Section 1. The appropriations made in this act are
for maximum amounts necessary to provide the services and accomplish the
purposes described in the budget. Savings shall be effected where the
total amounts appropriated are not required to perform these services and
accomplish these purposes and, except as allowed by the Executive Budget Act,
or this act, the savings shall revert to the appropriate fund at the end of
each fiscal year.

Sec. 2. This act shall be known as the Current Operations
Appropriations Act of 1993.

PART 1. GENERAL FUND
APPROPRIATIONS

CURRENT OPERATIONS/GENERAL FUND

Sec. 3. Appropriations from the General Fund of the
State for the maintenance of the State departments, institutions, and agencies,
and for other purposes as enumerated are made for the biennium ending June 30,
1995, according to the schedule that follows. Amounts set out in brackets
are reductions from General Fund appropriations for the 1993-94 and 1994-95
fiscal years.

Current Operations - General Fund1993-941994-95

General Assembly
$21,235,599 $24,732,877

Judicial
Department
247,922,854 250,716,110

Office of the Governor

01. Office of the
Governor
5,591,133
5,860,409

02. Office of State
Budget

and
Management
3,311,982 3,434,483

03. Office of State
Planning
1,580,119
1,604,233

Office of the Lieutenant
Governor
598,002
599,843

Department of Secretary of
State
4,878,150
4,837,901

Department of State
Auditor
8,401,577
7,845,701

Department of State Treasurer

01. State
Treasurer
5,867,689
6,344,754

02. Special
Contributions
5,437,248
5,437,248

Public Education

01. Department of Public

Instruction
55,921,458 54,539,621

02. State Aid to Local
School

Administrative
Units
3,501,446,758 3,523,885,399

03. State Board of
Education
98,408
98,408

Total Public
Education
3,557,466,624 3,578,523,428

Department of
Justice
54,052,134 54,357,084

Department of
Administration
51,301,446 52,530,060

Department of
Agriculture
43,012,661 42,953,239

Department of
Labor
13,775,815 13,830,286

Department of Insurance
13,640,140 12,998,139

Department of Transportation

01.
Aeronautics
8,516,571
9,016,571

02. Aid to
Railroads
96,305
100,000

Total Department of

Transportation
8,612,876
9,116,571

Department of Environment, Health, and

Natural
Resources
207,323,665 215,469,490

Office of Administrative
Hearings
1,929,239
1,933,500

Rules Review
Commission
258,516
258,593

Department of Human Resources

01. DHR -
Secretary
13,563,208 13,636,858

02. Division of
Aging
12,257,170 12,319,395

03. Schools for the Deaf
and

Hard of
Hearing
21,895,398 22,145,677

04. Social
Services
183,475,062 192,970,884

05. Medical
Assistance
860,289,202 1,009,564,797

06. Social Services -
State Aid to

Non-State
Agencies
7,011,725
6,711,725

07. Division of Services
for the
Blind
13,915,564 14,431,625

08. Division of Mental
Health,

Developmental Disabilities, and

Substance Abuse
Services
440,684,269 448,468,682

09. Division of Facility
Services
74,508,291 99,256,351

10. Division of
Vocational

Rehabilitation
Services
23,525,990 24,241,967

11. Division of Youth
Services
53,333,891 53,826,841

Total Department of Human
Resources
1,704,459,770 1,897,574,802

Department of
Correction
558,747,680 590,578,595

Department of Commerce

01.
Commerce
39,083,978 31,913,823

02. Biotechnology
Reserve
7,014,396
7,014,396

03.
MCNC
15,680,000 15,680,000

04.
REDC
1,470,000
1,470,000

Department of
Revenue
57,254,295 53,914,171

Department of Cultural
Resources
42,355,631 42,699,770

Department of Crime Control

and Public
Safety
29,520,666 27,447,220

Office of the State
Controller
6,405,431
6,411,017

University of North Carolina - Board

of Governors

01. General
Administration
17,200,841 17,166,323

02. University
Institutional

Programs
45,110,245 34,641,173

03. Related Educational
Programs
47,116,796 47,732,771

04. University of North
Carolina

at Chapel Hill

a. Academic
Affairs
137,621,265 139,521,105

b. Health
Affairs
109,719,612 111,962,193

c. Area
Health Education

Centers
32,351,252 32,347,434

05. North Carolina State
University

at Raleigh

a. Academic
Affairs
179,626,831 180,459,614

b.
Agricultural Research
Service
36,838,445 36,903,257

c.
Cooperative Extension
Service
28,882,861 28,613,730

06. University of North Carolina
at

Greensboro
55,765,417 55,961,841

07. University of North
Carolina at

Charlotte
59,807,408 60,072,862

08. University of North
Carolina at

Asheville
17,274,278 17,376,386

09. University of North
Carolina at

Wilmington
34,024,551 34,264,199

10. East Carolina
University

a. Academic
Affairs
75,557,468 76,109,240

b. Division
of Health
Affairs
37,715,639 37,768,125

11. North Carolina
Agricultural and

Technical State
University
41,202,109 41,430,408

12. Western Carolina
University
36,951,472 37,011,981

13. Appalachian State
University
53,291,855 53,368,375

14. Pembroke State
University
16,639,745 16,742,244

15. Winston-Salem State
University
16,623,929 16,751,903

16. Elizabeth City State

University
15,683,323 15,703,970

17. Fayetteville State
University
19,563,111 19,942,709

18. North Carolina
Central

University
28,319,792 28,533,237

19. North Carolina School
of the

Arts
8,078,021
8,097,592

20. North Carolina School
of

Science and Mathematics
7,569,189
7,619,946

21. UNC Hospitals at
Chapel
Hill
40,690,416 43,476,135

Total University of North

Carolina - Board of
Governors
1,199,225,871 1,199,578,753

Department of Community
Colleges
412,797,941 404,414,482

State Board of
Elections
545,539
545,885

Contingency and
Emergency
1,125,000
1,125,000

Reserve for Salary Increases

a. 2% Salary
Increase
112,052,142 116,549,560

b. Wage Floor
for Lowest

Paid
Employees
135,500
135,500

Reserve for

Compensation
Bonus
34,244,460
-

Reserve for Public School

Employees' Sick Leave

Bank
1,000,000
1,000,000

Reserve for Restoring
Paydate
214,200,000
-

Reserve for Salary
Adjustments
500,000
500,000

Reserve for Lowest Paid
Employees
1,400,724
1,400,724

Reserve for OSHA - Bloodborne
Pathogens
1,000,000
1,000,000

Reserve for Retiree 30%
Reduction
(7,247,298) (7,247,298)

Reserve for Retirement Rate
Change
1,316,400
1,316,400

Debt Service
92,263,558 89,113,783

Local Government Shared
Revenue
236,824,154 236,824,154

Health Care Initiatives
5,500,0002,000,000

GRAND TOTAL CURRENT OPERATIONS -

GENERAL
FUND
$9,025,073,307 $9,016,344,686

PART 2. CURRENT
OPERATIONS/HIGHWAY FUND

Sec. 4. Appropriations from the Highway Fund of the
State for the maintenance and operation of the Department of Transportation,
and for other purposes as enumerated, are made for the biennium ending June 30,
1995, according to the following schedule:

Current Operations - Highway Fund1993-941994-95

Department of Transportation

01.
Administration
$ 41,039,126 $ 38,232,451

02. Division of Highways

a.
Administration and

Operations
33,415,706 33,440,792

b. State
Construction

(01) Primary Construction
-
-

(02) Secondary
Construction
66,486,917 66,884,639

(03) Urban
Construction
20,000,000 20,000,000

(04) Access and Public

Service
Roads
2,000,000
2,000,000

(05) Spot Safety

Improvements
9,100,000
9,100,000

c. State
Funds to Match Federal

Highway Aid

(01)
Construction
37,020,332 37,020,332

(02) Planning Survey and Highway

Planning
Research
2,959,649 2,959,649

d. State
Maintenance

(01)
Primary
98,104,791 100,168,650

(02)
Secondary
171,916,160 175,543,548

(03)
Urban
25,796,101 26,358,971

(04) Contract
Resurfacing
87,500,000 87,500,000

e.
Ferry
Operations
15,541,455 15,541,455

03.
Division of Motor Vehicles
79,025,411 78,654,819

04.
Governor's Highway Safety
Program
290,923
291,575

05.
State Aid to
Municipalities
66,486,917 66,884,639

06.
State Aid for Public

Transportation
10,596,461 10,646,921

07.
Salary Adjustments for Highway

Fund
Employees
200,000
200,000

08.
Reserve to Correct Occupational

Safety and Health
Conditions
425,000
425,000

09.
Debt
Service
37,359,875 27,664,550

10.
Reserve for Compensation

Increases
7,109,156 7,109,156

11.
Reserve for Transportation

Study
222,750
346,500

12.
Reserve for Air Cargo

Authority
750,000
750,000

Reserve for Compensation
Bonus
3,481,723
-

Reserve for Retirement Formula

Change
113,000
113,000

Emergencies and Inflationary
Adjustment
1,085,490 1,585,490

Appropriations for Other State
Agencies

01.
Crime Control and Public

Safety
92,671,325 93,601,574

02.
Other Agencies

a.
Department of
Agriculture
3,057,180 3,030,245

b.
Department of
Revenue
2,063,522 2,065,412

c.
Department of Environment,

Health, and Natural Resources:

LUST Trust
Fund
4,809,298 4,904,343

Chemical Test
Program
371,944
373,407

d.
Department of
Correction
4,614,056 4,614,056

e.
Department of Public

Instruction
23,188,826 23,188,826

f.
Department of State

Treasurer
9,900,00010,500,000

GRAND TOTAL CURRENT OPERATIONS -

HIGHWAY
FUND
$ 958,703,093 $ 951,700,000

PART 3. HIGHWAY TRUST FUND

Sec. 5. Appropriations from
the Highway Trust Fund are made for the fiscal biennium ending June 30, 1995,
according to the following schedule:

Sec. 6. (a) Appropriations from federal block grant
funds are made for the fiscal year ending June 30, 1994, according to the
following schedule:

COMMUNITY SERVICES BLOCK GRANT

01. Community Action
Agencies
$ 9,105,422

02. Limited Purpose
Agencies
505,857

03. Department of Human
Resources

to administer and monitor

the activities of the

Community Services Block
Grant
505,857

TOTAL COMMUNITY SERVICES BLOCK
GRANT
$ 10,117,136

SOCIAL SERVICES BLOCK GRANT

01. County Departments of
Social
Services
$ 42,253,005

02. Allocation for
In-Home Services provided

by County Departments of

Social
Services
458,722

03. Division of Mental
Health, Developmental

Disabilities, and Substance Abuse
5,519,178

04. Division of Services
for the
Blind
3,205,711

05. Division of Youth
Services
1,052,674

06. Division of Facility
Services
336,575

07. Division of
Aging
334,663

08. Day Care
Services
12,158,899

09. Volunteer
Services
55,458

10. State Administration
and State Level

Contracts
3,473,524

11. Voluntary
Sterilization
Funds
98,710

12. Transfer to Maternal
and Child

Health Block
Grant
1,585,833

13. Adult Day Care
Services
306,323

14. County Departments of
Social Services for

Child Abuse/Prevention and

Permanency
Planning
394,841

15. Allocation to
Division of Maternal and

Child Health for Grants-in-Aid to Prevention

Programs
439,261

16. Transfer to
Preventive Health

Block Grant for Emergency Medical Services

and Basic Public Health
Services
695,834

17. Allocation to
Preventive Health Block

Grant for AIDS
Education
81,001

18. Allocation to
Department of Administration

for North Carolina Fund for
Children
45,270

19. Allocation to Home
and Community Care

Block Grant for Persons Age 60

and
Older
1,649,077

20. Allocation to the
Division of Economic

Opportunity for Head Start,

Elderly and Handicapped
Services
197,421

TOTAL SOCIAL SERVICES BLOCK
GRANT
$ 74,341,980

LOW INCOME ENERGY BLOCK GRANT

01. Energy Assistance
Programs
$ 16,672,034

02. Crisis
Intervention
5,411,563

03.
Administration
2,413,779

04. Weatherization
Program
2,100,000

05. Indian
Affairs
33,022

TOTAL LOW INCOME ENERGY BLOCK
GRANT
$ 26,630,398

MENTAL HEALTH SERVICES BLOCK GRANT

01. Provision of
Community-Based

Services in accordance with the

Mental Health Study Commission's

Adult Severe and Persistently

Mentally Ill
Plan
$ 3,794,179

02. Provision of
Community-Based

Services in accordance with the

Mental Health Study Commission's

Child Mental Health
Plan
1,802,819

03.
Administration
514,037

TOTAL MENTAL HEALTH SERVICES BLOCK
GRANT
$ 6,111,035

BLOCK GRANT FOR THE PREVENTION AND

TREATMENT OF SUBSTANCE ABUSE

01. Provision of
Community-Based

Alcohol and Drug-Abuse Services,

Tuberculosis Services, and Services

provided by the Alcohol, Drug-Abuse

Treatment
Centers
$ 10,335,939

02. Continuation and
Expansion of

Services for Pregnant Women and

Women with Dependent
Children
4,795,389

03. Continuation and
Expansion of

Services to IV Drug Abusers and others

at risk for HIV
diseases
5,567,328

04. Provision of services
in accordance with

the Mental Health Study Commission's

Child and Adolescent Alcohol and other

Drug-Abuse Plan
4,396,416

05.
Administration
1,669,460

TOTAL BLOCK GRANT FOR PREVENTION

AND TREATMENT OF SUBSTANCE
ABUSE
$ 26,764,532

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01. Child Day Care
Services
$ 14,953,945

02. Administrative
Expenses and Quality

and Availability
Initiatives
1,544,405

03. Before and After
School Child Care Programs

and Early Childhood Development
Programs
5,010,698

04. Quality Improvement
Activities
1,480,737

TOTAL CHILD CARE AND DEVELOPMENT

BLOCK
GRANT
$ 22,989,785

(b) Decreases in Federal
Fund Availability

If federal funds are reduced below the amounts specified above
after the effective date of this act, then every program, in each of the
federal block grants listed above, shall be reduced by the same percentage as
the reduction in federal funds.

(c) Increases in Federal
Fund Availability

Any block grant funds appropriated by the United States
Congress in addition to the funds specified in this act shall be expended by
the Department of Human Resources, with the approval of the Office of State
Budget and Management, provided the resultant increases are in accordance with
federal block grant requirements and are within the scope of the block grant
plan approved by the General Assembly. All these budgeted increases shall
be reported to the Joint Legislative Commission on Governmental Operations and
to the Director of the Fiscal Research Division.

(d) If funds appropriated
through the Child Care and Development Block Grant for any program cannot be
obligated or spent in that program within the obligation or liquidation periods
allowed by the federal grants, the Department may move funds to other programs,
in accordance with the federal requirements of the grant, in order to use the
federal funds fully.

Requested by: Senator Martin of Pitt, Representatives
Bowman, DeVane

NER BLOCK GRANT PROVISIONS

Sec. 7. (a) Appropriations from federal block grant
funds are made for the fiscal year ending June 30, 1994, according to the
following schedule:

TOTAL JOB TRAINING PARTNERSHIP
ACT
$ 53,841,243

COMMUNITY DEVELOPMENT BLOCK GRANT

01. State
Administration
$ 1,026,940

02. Urgent Needs and
Contingency
2,242,830

03. Housing
Development
2,242,829

04. Economic
Development
8,971,318

05. Community
Revitalization
31,399,613

06. State Technical
Assistance
463,470

TOTAL COMMUNITY DEVELOPMENT

BLOCK
GRANT
$ 46,347,000

MATERNAL AND CHILD HEALTH SERVICES

01. Healthy
Mother/Healthy Children

Block Grants to Local Health

Departments
$ 11,399,969

02. High Risk Maternity
Clinic Services,

Perinatal Education, and Consultation

to Local Health Departments

and Other Health Care
Providers
1,383,538

03. Services to Children
with Disabilities
5,065,331

04. Reimbursements for
Local Health

Departments for Contracted

Nutritional
Services
120,530

TOTAL MATERNAL AND CHILD

HEALTH
SERVICES
$ 17,969,368

PREVENTIVE HEALTH BLOCK GRANT

01. Emergency Medical
Services
$ 452,375

02. Basic Public Health
Services
428,395

03. Hypertension
Programs
671,630

04. Statewide Health
Promotion
Programs
2,651,119

05. Fluoridation of Water
Supplies
228,404

06. Rape Prevention and
Rape

Crisis
Programs
183,632

07. AIDS/HIV Education,
Counseling,

and
Testing
81,001

08. Office of Minority
Health and

Minority Health
Council
190,000

TOTAL PREVENTIVE HEALTH BLOCK
GRANT
$ 4,886,566

(b) Decreases in Federal
Fund Availability

If federal funds are reduced below the amounts specified
above after the effective date of this act, then every program, in each of the
federal block grants listed above, shall be reduced by the same percentage as
the reduction in federal funds.

(c) Increases in Federal
Fund Availability

Any block grant funds appropriated by the United States
Congress in addition to the funds specified in this act shall be expended as
follows:

(1) For the Community
Development Block Grant - each program category under the Community Development
Block Grant shall be increased by the same percentage as the increase in
federal funds.

(2) For the Maternal and
Child Health Services Block Grant - thirty percent (30%) of these additional
funds shall be allocated to services for children with special health care
needs and seventy percent (70%) shall be allocated to local health departments
to assist in the reduction of infant mortality.

(3) For the Preventive
Health Block Grants - these additional funds may be budgeted by the appropriate
department, with the approval of the Office of State Budget and Management,
provided the resultant increases are in accordance with federal block grant
requirements and are within the scope of the block grant plan approved by the
General Assembly. All these budgeted increases shall be reported to the
Joint Legislative Commission on Governmental Operations and to the Director of
the Fiscal Research Division.

(d) Education Setaside of
JTPA Funds

The Department of Commerce shall certify to the Joint
Legislative Commission on Governmental Operations and to the Fiscal Research
Division of the Legislative Services Office when Job Training Partnership Act
funds have been distributed to each agency, the total amount distributed to
each agency, and the total amount of eight percent (8%) Education Setaside
funds received.

(e) Limitations on
Community Development Block Grant Funds

Of the funds appropriated in this section for the Community
Development Block Grant, not more than one million twenty-six thousand nine
hundred forty dollars ($1,026,940) may be used for State administration; up to
two million two hundred forty-two thousand eight hundred thirty dollars
($2,242,830) may be used for Urgent Needs and Contingency; up to two million
two hundred forty-two thousand eight hundred twenty-nine dollars ($2,242,829)
may be used for Housing Development; up to eight million nine hundred
seventy-one thousand three hundred eighteen dollars ($8,971,318) may be used
for Economic Development; not less than thirty-one million three hundred
ninety-nine thousand six hundred thirteen dollars ($31,399,613) shall be used
for Community Revitalization; and up to four hundred sixty-three thousand four
hundred seventy dollars ($463,470) may be used for State Technical
Assistance. If federal block grant funds are reduced or increased by the
United States Congress after the effective date of this act, then these
reductions or increases shall be allocated in accordance with subsection (b) or
(c) of this section, as applicable.

Sec. 9. For the 1993-94 fiscal year only, G.S.
143-16.3 does not apply to the extent that the Director of the Budget finds
that compliance is impossible and that deviation is necessary because of
complications in the budget process that were not contemplated when the budget
for the 1993-95 fiscal biennium was enacted.

The Director of the Budget shall report on a quarterly basis
for the first six months of the 1993-94 fiscal year and monthly thereafter, to
the Joint Legislative Commission on Governmental Operations and to the Fiscal
Research Division of the Legislative Services Office on any deviations from
G.S. 143-16.3, the reasons that compliance was impossible, and the
complications in the budget process that were not contemplated when the budget
for the 1993-95 fiscal biennium was enacted that made compliance impossible.

SPECIAL FUNDS, FEDERAL FUNDS, AND
DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES

Sec. 10. There is appropriated out of the cash
balances, federal receipts, and departmental receipts available to each
department, sufficient amounts to carry on authorized activities included under
each department's operations. All these cash balances, federal receipts,
and departmental receipts shall be expended and reported in accordance with
provisions of the Executive Budget Act, except as otherwise provided by
statute, and shall be expended at the level of service authorized by the
General Assembly. If the receipts, other than gifts and grants that are
unanticipated and are for a specific purpose only, collected in a fiscal year
by an institution, department, or agency exceed the receipts certified for it
in General Fund Codes or Highway Fund Codes, then the Director of the Budget
shall decrease the amount he allots to that institution, department, or agency
from appropriations from that Fund by the amount of the excess, unless the
Director of the Budget finds that the appropriations from the Fund are
necessary to maintain the function that generated the receipts at the level
anticipated in the certified Budget Codes for that Fund. Funds that
become available from overrealized receipts in General Fund Codes and Highway
Fund Codes, other than gifts and grants that are unanticipated and are for a
specific purpose only, shall not be used for new permanent employee positions
or to raise the salary of existing employees except:

(1) As provided in G.S.
116-30.1, 116-30.2, 116-30.3, 116-30.4, or 143-27; or

(2) If the Director of the
Budget finds that the new permanent employee positions are necessary to
maintain the function that generated the receipts at the level anticipated in
the certified budget codes for that Fund. The Director of the Budget
shall notify the President Pro Tempore of the Senate, the Speaker of the House
of Representatives, the chairmen of the appropriations committees of the Senate
and the House of Representatives, and the Fiscal Research Division of the
Legislative Services Office that he intends to make such a finding at least 10
days before he makes the finding. The notification shall set out the
reason the positions are necessary to maintain the function.

The Office of State Budget and
Management shall report to the Joint Legislative Commission on Governmental
Operations and to the Fiscal Research Division of the Legislative Services
Office within 30 days after the end of each quarter the General Fund Codes or
Highway Fund Codes that did not result in a corresponding reduced allotment
from appropriations from that Fund.

The Director of the Budget shall develop necessary budget
controls, regulations, and systems to ensure that these funds and other State
funds subject to the Executive Budget Act, are not spent in a manner which
would cause a deficit in expenditures.

Pursuant to G.S. 143-34.2, State departments, agencies,
institutions, boards, or commissions may make application for, receive, or
disburse any form of non-State aid. All non-State monies received shall
be deposited with the State Treasurer unless otherwise provided by State
law. These funds shall be expended in accordance with the terms and
conditions of the fund award that are not contrary to the laws of North
Carolina.

Sec. 11. All insurance and all official fidelity
and surety bonds authorized for the several departments, institutions, and
agencies shall be effected and placed by the Insurance Department, and the cost
of placement shall be paid by the affected department, institution, or agency
with the approval of the Insurance Commissioner.

Sec. 12. Of the funds appropriated in this act to
the Contingency and Emergency Fund, the sum of nine hundred thousand dollars
($900,000) for the 1993-94 fiscal year and the sum of nine hundred thousand
dollars ($900,000) for the 1994-95 fiscal year shall be designated for emergency
allocations, which are for the purposes outlined in G.S. 143-23(a1)(3), (4),
and (5). Two hundred twenty-five thousand dollars ($225,000) for the
1993-94 fiscal year and two hundred twenty-five thousand dollars ($225,000) for
the 1994-95 fiscal year shall be designated for other allocations from the
Contingency and Emergency Fund.

Sec. 13. (a) Any program designated by the General
Assembly as experimental, model, or pilot shall be shown as a separate budget
item and shall be considered as an expansion item until a succeeding General
Assembly reapproves it.

Any new program funded in whole or in part through a special
appropriations bill shall be designated as an experimental, model, or pilot
program.

(b) The Governor shall
submit to the General Assembly with his proposed budget a report of which items
in the proposed budget are subject to the provisions of this section.

Sec. 14. The Director of the Budget may transfer to
General Fund budget codes from the General Fund salary adjustment
appropriation, and may transfer to Highway Fund budget codes from the Highway
Fund salary adjustment appropriation, amounts required to support approved
salary adjustments made necessary by difficulties in recruiting and holding
qualified employees in State government. The funds may be transferred
only when the use of salary reserve funds in individual operating budgets is
not feasible.

Sec. 15. All funds appropriated by this act into
reserves may be expended only for the purposes for which the reserves were
established.

Requested by: Senator Martin of Pitt, Representatives
Bowman, DeVane

STATE MONEY RECIPIENTS/CONFLICT OF
INTEREST POLICY

Sec. 16. Each private, nonprofit entity eligible to
receive State funds, either by General Assembly appropriation, or by grant,
loan, or other allocation from a State agency, before funds may be disbursed to
the entity, shall file with the disbursing agency a notarized copy of that
entity's policy addressing conflicts of interest that may arise involving the
entity's management employees and the members of its board of directors or
other governing body. The policy shall address situations where any of
these individuals may directly or indirectly benefit, except as the entity's
employees or members of the board or other governing body, from the entity's
disbursing of State funds, and shall include actions to be taken by the entity
or the individual, or both, to avoid conflicts of interest and the appearance
of impropriety.

The State Controller shall reserve up to one-fourth of any
credit balance, as determined on a cash basis, remaining in the General Fund at
the end of each fiscal year to the Savings Reserve Account as provided in G.S.
143-15.3, unless that would result in the Savings Reserve Account having funds
in excess of five percent (5%) of the amount appropriated the preceding year
for the General Fund operating budget, including local government tax-sharing
funds; in that case, only funds sufficient to reach the five percent (5%) level
shall be reserved. The State Controller shall also reserve the lesser
of (i) one-fourth of any credit balance, as determined on a cash basis,
remaining in the General Fund and (ii) one and one-half percent (1.5%) of the
replacement value of all State buildings supported from the General Fund, at
the end of each fiscal year to the Repairs and Renovations Reserve Account as
provided in G.S. 143-15.3A. The General Assembly may appropriate that
part of the anticipated General Fund credit balance not expected to be reserved
to the Savings Reserve Account or the Repairs and Renovations Reserve
Account only for capital improvements or other one-time expenditures."

(b) Chapter 143 of the
General Statutes is amended by adding a new section to read:

"§
143-15.3A. Repairs and Renovations Reserve Account.

(a)There is
established a Repairs and Renovations Reserve Account as a restricted reserve
in the General Fund. The State Controller shall reserve to the Repairs
and Renovations Reserve Account one-fourth of any unreserved credit balance
remaining in the General Fund at the end of each fiscal year. As used in
this section, the term 'unreserved credit balance' means that part of the
credit balance, as determined on a cash basis, not already reserved to the
Savings Reserve Account or the Repairs and Renovations Reserve Account.

(b)The funds
in the Repairs and Renovations Reserve Account shall be used only for the
repair and renovation of State buildings and related infrastructure that are
supported from the General Fund. The Director of the Budget shall not use
funds in the Repairs and Renovations Reserve Account unless the use has been
approved by an act of the General Assembly."

(c) G.S. 143-15.3(a)
reads as rewritten:

"(a) There is established
a Savings Reserve Account as a restricted reserve in the General Fund.
The State Controller shall reserve to the Savings Reserve Account one-fourth of
any unreserved credit balance remaining in the General Fund at the end of each
fiscal year until the account contains funds equal to five percent (5%) of the
amount appropriated the preceding year for the General Fund operating budget,
including local government tax-sharing funds. If the balance in the
Savings Reserve Account falls below this level during a fiscal year, the State
Controller shall reserve to the Savings Reserve Account for the following
fiscal years up to one-fourth of any unreserved credit balance remaining in the
General Fund at the end of each fiscal year until the account again equals five
percent (5%) of the amount appropriated the preceding year for the General Fund
operating budget, including local government tax-sharing funds. As used
in this section, the term 'unreserved credit balance' means that part of the
credit balance, as determined on a cash basis, not already reserved to the
Savings Reserve Account. Account or the Repairs and Renovations
Reserve Account."

(d) G.S. 143-11 reads as
rewritten:

"§ 143-11.
Survey of departments.

On or before the fifteenth day of December, biennially in the
even-numbered years, the Director shall make a complete, careful survey of the
operation and management of all the departments, bureaus, divisions, officers,
boards, commissions, institutions, and agencies and undertakings of the State
and all persons or corporations who use or expend State funds, in the interest
of economy and efficiency, and of obtaining a working knowledge upon which to
base recommendations to the General Assembly as to appropriations for
maintenance and special funds and capital expenditures for the succeeding
biennium. If the Director and the Commission shall agree in their
recommendations for the budget for the next biennial period, he shall prepare
their report in the form of a proposed budget, together with such comment and
recommendations as they may deem proper to make. If the Director and
Commission shall not agree in substantial particulars, the Director shall
prepare the proposed budget based on his own conclusions and judgment, and the
Commission or any of its members retain the right to submit separately to the
General Assembly such statement of disagreement and the particulars thereof as
representing their views. The budget report shall contain a complete and
itemized plan of all proposed expenditures for each State Department, bureau,
board, division, institution, commission, State agency or undertaking, person
or corporation who receives or may receive for use and expenditure any State
funds, in accordance with the classification adopted by the State Controller,
and of the estimated revenues and borrowings for each year in the ensuing
biennial period beginning with the first day of July thereafter. Opposite
each item of the proposed expenditures, the budget shall show in separate
parallel columns the amount expended for the last preceding appropriation year,
for the current appropriation year, and the increase or decrease. The
budget shall clearly differentiate between General Fund expenditures for
operating and maintenance, special fund expenditures for any purpose, and
proposed capital outlays.

The Director shall accompany the budget with:

(1) A budget message
supporting his recommendations and outlining a financial policy and program for
the ensuing biennium. The message will include an explanation of increase
or decrease over past expenditures, a discussion of proposed changes in
existing revenue laws and proposed bond issues, their purpose, the amount, rate
of interest, term, the requirements to be attached to their issuance and the
effect such issues will have upon the redemption and annual interest charges of
the State debt.

(2) State Controller
reports including:

a. An itemized
and complete financial statement for the State at the close of the last
preceding fiscal year ending June 30.

b. A statement
of special funds.

(2a) A statement showing the itemized
estimates of the condition of the State treasury as of the beginning and end of
each of the next two appropriation years.

(3) A report on the fees
charged by each State department, bureau, division, board, commission,
institution, and agency during the previous fiscal year, the statutory or
regulatory authority for each fee, the amount of the fee, when the amount of
the fee was last changed, the number of times the fee was collected during the
prior fiscal year, and the total receipts from the fee during the prior fiscal
year.

(4) A statement showing
the State Board of Education's request, in accordance with G.S. 115C-96, for
sufficient funds to provide textbooks to public school students.

(5)A proposal
for expenditure of the funds in the Repairs and Renovations Reserve Account,
which is established in G.S. 143-15.3A. The Director shall consider the
data from the Facilities Condition and Assessment Program in the Office of
State Construction when establishing priorities for the proposed expenditure of
these funds.

It shall be a compliance with this section by each incoming
Governor, at the first session of the General Assembly in his term, to submit
the budget report with the message of the outgoing Governor, if he shall deem
it proper to prepare such message, together with any comments or
recommendations thereon that he may see fit to make, either at the time of the
submission of the said report to the General Assembly, or at such other time,
or times, as he may elect and fix.

The function of the Advisory Budget Commission under this
section applies only if the Director of the Budget consults with the Commission
in preparation of the budget."

(e) This section becomes
effective beginning with the General Fund credit balance at the end of the
1992-93 fiscal year.

Sec. 21. (a) Pursuant to the provisions of G.S.
14-250, for the 1993-95 fiscal biennium, the General Assembly authorizes the
use of private license tags on State-owned motor vehicles only for the State
Highway Patrol and for the following:

DepartmentExemptionCategoryNumber

Motor
Vehicles
License and
Theft
97

Justice
SBI Agents
277

Correction
Probation/Parole Surveillance

Officers (intensive

probation)
25

Crime Control and

Public
Safety ALE
Officers
92

(b) The 92 ALE vehicles
authorized by this section to use private license tags shall be distributed as
follows:

(1) 54 among Agent I
officers;

(2) 20 among Agent II
officers;

(3) 1 to the Deputy
Director;

(4) 12 to the District
Offices/Extra Vehicles; and

(5) 5 to the Director, to
be distributed at the Director's discretion.

Sec. 21.1. Funds appropriated in this act to the
Reserve for Paydate Restoration in the amount of two hundred fourteen million
two hundred thousand dollars ($214,200,000) shall be used to restore the June
30 Payday for State Employees, University Employees, and Community Colleges
Employees so that they will be paid from the General Fund on June 30, 1994,
instead of July 1, 1994, for work done during June of 1994.

Funds allotted pursuant to this section to constituent
institutions of The University of North Carolina that have been designated as
special responsibility constituent institutions under G.S. 116-30.1 are exempt
from the provisions of G.S. 116-30.2 and G.S. 116-30.3.

In no event shall any allotments made pursuant to this
section exceed the actual General Fund requirements, which are to be reported
to the 1993 General Assembly, Regular Session 1994, and to the Fiscal Research
Division by June 30, 1994.

"(b) The Director may not
use funds in the Savings Reserve Account unless the use has been approved by an
act of the General Assembly. It is the intent of the General Assembly
that in future sessions, as funds are available, it will reduce and then
eliminate the State's liability for payroll deferrals for State employees and
community college employees and for the deferral of the twelfth month of
teacher payroll. These actions will bring the State into closer
conformity with the GAAP. effective as of the 1994-95 fiscal year the
State's liability for the deferral of the twelfth month of teacher payroll
shall be eliminated. Funds may be used from the Savings Reserve Account
and, to the extent necessary, may be combined with other available funds to
eliminate this liability and thus bring the State into conformity with the
GAAP."

Sec. 21.3. During the 1993-94 fiscal year, as it
receives funds associated with Disproportionate Share Payments from the State psychiatric
hospitals, the Division of Medical Assistance shall deposit funds appropriated
for the Medicaid program, in a sum equal to the federal share of the
Disproportionate Share Payments, as nontax revenue. Any of these funds
that are not appropriated by the 1993 General Assembly shall be reserved by the
State Controller for future appropriation.

Sec. 22. (a) There is created the Budget Practices
Study Commission, an independent commission to study the effectiveness of the
Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.
The Commission shall consist of 14 members. The Speaker of the House of
Representatives shall appoint seven members, six who shall be members of the
House of Representatives and one who shall be familiar with and have experience
in government fiscal management. The President Pro Tempore of the Senate
shall appoint seven members, six who shall be members of the Senate and one who
shall be familiar with and have experience in government fiscal
management. Initial appointments shall be made within 30 days following
the 1993 General Assembly's adjournment for a period of more than 10 days.

The President Pro Tempore of the Senate and the Speaker of
the House of Representatives shall each appoint a cochair of the Commission
from their appointees. The cochairs shall call the first meeting and
preside at alternate meetings.

(b) The Budget Practices
Study Commission shall examine the current content, interpretation, and
application of the Executive Budget Act, and shall address in particular the
following topics:

(1) Similarities and
differences between the Executive Budget Act and analogous statutes in other
states, including the advantages of various approaches to budget preparation,
presentation, appropriation, and execution.

(2) The effect of current
statutory provisions, appropriations techniques, and administrative practices
upon:

a. The ability
of the General Assembly to anticipate, evaluate, and meet the financial needs
of State government.

b. The
availability of data needed by the General Assembly for informed fiscal
decision-making; particularly the availability of output, impact, or
performance data.

c. The General
Assembly's ability to exercise its authority under Section 7 of Article V of
the North Carolina Constitution; namely, its authority to control withdrawals
from the State treasury and to determine the purposes for which State funds may
be expended.

d. The
Governor's authority under Section 5 of Article III of the North Carolina
Constitution; namely, the authority to prepare and recommend a budget and the
obligation to administer the budget as enacted by the General Assembly.

e. The balance
between fiscal control and management flexibility in the administration of
agency budgets.

f. The
ability of State agencies to plan their fiscal conduct and to perform their
statutorily assigned functions efficiently in accordance with modern business
practices.

(3) Provisions of the
budget system regarding management of various fund types, including special
revenue funds, federal funds, proprietary funds, university funds, and
fiduciary funds; and various types of departmental receipts.

(4) The appropriate role
of legislative oversight mechanisms, including the Joint Legislative Commission
on Governmental Operations.

(5) Such matters as may,
in the judgment of the Commission, affect the capacity of the General Assembly
or the Governor to devise, adopt, and implement a sound program of fiscal management
on behalf of the people of North Carolina.

(c) The Budget Practices
Study Commission shall also have the following additional powers and duties
with specific reference to the performance budget review process:

(1) To review and evaluate
the development and implementation of the performance budgeting system
authorized by the General Assembly.

(2) To examine the
presentation of information in the performance budgeting system to assure the
quality and validity of the information.

(3) To work in cooperation
with the Governor and other State agencies as additional program areas are
converted into the performance budgeting system.

(4) To propose strategies
for the General Assembly to manage and make decisions based on the performance
budgeting system.

(d) Subject to the
approval of the Legislative Services Commission, the professional and clerical
staff of the Legislative Services Office shall be available to the Budget
Practices Study Commission. Upon request of the Commission, all State
departments and agencies shall furnish to the Commission any information in
their possession or available to them. The Commission may acquire by
contract or purchase such other expertise or information as may be necessary to
complete its report.

(e) Members of the
Commission who are also members of the General Assembly shall be paid
subsistence and travel expenses at the rate set forth in G.S. 120-3.1.
Members of the Commission who are officials or employees of the State shall receive
travel allowances at the rate set forth in G.S. 138-6. All other members
of the Commission shall be paid per diem and allowances at the rates set forth
in G.S. 138-5.

(f) The Budget
Practices Study Commission shall report its findings and recommendations to the
1993 General Assembly, 1994 Regular Session.

(g) Of the funds
appropriated from the General Fund to the General Assembly, the sum of forty
thousand dollars ($40,000) for the 1993-94 fiscal year shall be allocated for
this study.

Sec. 23. (a) Funds appropriated in this act to the
Office of State Budget and Management for the implementation of the federal
OSHA regulations regarding bloodborne pathogens shall be used only to support
the cost of testing, inoculations, personal protective equipment, and required
cleanup equipment and supplies for employees who are subject to these
regulations and only if adequate funds are not available for these
purposes. They shall not be used as planning money or for salaries for
any new positions or for any other purpose than specifically authorized by this
section.

(b) The Office of State
Budget and Management, in consultation with the Department of Environment,
Health, and Natural Resources, the Department of Labor, the Office of State
Personnel, and the Department of Administration, shall prepare a long-range
plan for State government implementation of the federal OSHA regulations
regarding bloodborne pathogens. The plan shall include identification of
all implementation costs over a five-year period, both recurring and
nonrecurring, by agency and by type of expenditure. The plan shall be
presented to the General Assembly by April 1, 1994.

"(1) For transportation by
privately owned automobile, twenty-five cents (25¢) the business
standard mileage rate set by the Internal Revenue Service per mile of
travel and the actual cost of tolls paid. Any other law which sets a
mileage rate by referring to the rate set herein, instead establishes a rate of
twenty-five cents (25¢) per mile. No reimbursement shall be made for
the use of a personal car in commuting from an employee's home to his duty
station in connection with regularly scheduled work hours. Any
designation of an employee's home as his duty station by a department head
shall require prior approval by the Office of State Budget and Management on an
annual basis."

(b) Effective upon the
convening of the 1995 Regular Session of the General Assembly, G.S.
120-3.1(a)(1) reads as rewritten:

"(1) A weekly travel
allowance for each week or fraction thereof that the General Assembly is in
regular or extra session. The amount of the weekly travel allowance shall
be calculated for each member by multiplying the actual round-trip mileage from
that member's home to the City of Raleigh by the rate per mile allowed to
State employees for official travel. which is the business standard
mileage rate set by the Internal Revenue Service in Rev. Proc. 92-104, December
28, 1992."

(c) Effective upon the
convening of the 1995 Regular Session of the General Assembly, G.S.
120-3.1(a)(2) reads as rewritten:

"(2) A travel allowance at
the rate allowed by statute for State employees which is the business
standard mileage rate set by the Internal Revenue Service in Rev. Proc. 92-104,
December 28, 1992, whenever the member travels, whether in or out of
session, as a representative of the General Assembly or of its committees or
commissions, with the approval of the Legislative Services Commission."

Requested by: Representatives Crawford, Wainwright,
Senator Plexico

MEDIATION COSTS

Sec. 25. (a) Notwithstanding the provisions of G.S.
143-23, any State department or agency may use funds available from lapsed
salaries to pay costs apportioned to the department or agency as a result of
mediation ordered by the Industrial Commission or of a mediated settlement
conference in the Office of Administrative Hearings ordered by the chief
administrative law judge.

(b) If House Bill 657,
1993 Regular Session is enacted, the first sentence of Section 3 of that act is
amended by deleting "only if the General Assembly appropriates funds to
implement the purpose of this act,". If House Bill 658, 1993 Regular
Session is enacted, the first sentence of Section 4 of that act is amended by
deleting "only if the General Assembly appropriates funds to implement the
purpose of this act,".

"§
105-213. Appropriation to counties and municipalities; use of
appropriation. Distribution of taxes collected.

(a) Amount to be
Distributed. - On or before June 25 of each year, the Secretary shall
distribute to counties and municipalities There is annually
appropriated from the General Fund to counties and municipalities one
hundred three percent (103%) of the amount of revenue collected under this
Article from the preceding July 1 through the preceding April 30, during
the 1989-90 fiscal year, less an amount equal to the costs during the preceding
fiscal year of: less all of the following:

(1) An amount equal to
the costs during the preceding fiscal year of:

a.
Refunds made during the fiscal year of taxes levied under this Article.

(2)b.
The Department of Revenue to collect and administer the taxes levied under this
Article.

(3)c.
The Department of Revenue in performing the duties imposed by Article 15 of
this Chapter.

(4)d.
The Property Tax Commission.

(5)e.
The Institute of Government in operating a training program in property tax
appraisal and assessment.

(6)f.
The personnel and operations provided by the Department of State Treasurer for
the Local Government Commission.

(2)An amount
equal to the excess of the amount of revenue collected under this Article
during the 1993-94 fiscal year over the amount of revenue collected under this
Article during the 1989-90 fiscal year, as certified by the Secretary.

The appropriation shall be
distributed by August 30 of each year. The appropriation shall be
included in the Current Operations Appropriations Act.

(b)Allocation
of Distribution. - The appropriation amount of revenue to be
distributed under subsection (a) shall be allocated among the counties in
proportion to the net amount of taxes collected under this Article in
each county during the preceding fiscal year. The net amount of taxes
collected in a county is the amount collected less the amount of refunds made
of taxes previously collected. The Secretary of Revenue shall
keep a separate record by counties of the taxes collected under this
Article. The Secretary shall allocate the amount appropriated of
revenue to be distributed under this section subsection (a) to
the counties according to the county in which the taxes were collected. in
accordance with the tax records. The amounts so allocated to each
county shall in turn be allocated between the county and the municipalities in
the county in proportion to the total amount of ad valorem taxes levied by each
during the fiscal year preceding the distribution. In dividing these
amounts between each county and its municipalities, the Secretary shall treat
taxes levied by a merged school administrative unit described in G.S. 115C-513
in a part of the unit located in a county as taxes levied by the county in
which that part is located. After making these allocations, the Secretary
of Revenue shall certify to the State Controller and to the State
Treasurer the amount to be distributed to each county and municipality in the
State. The State Controller shall then issue a warrant on the State
Treasurer to each county and municipality in the amount certified. The
funds shall be drawn from the Local Government Tax Sharing Reserve.

For the purpose of computing the distribution of the tax
under this subsection to any county and the municipalities located therein in
the county for any quarter with respect to which the property valuation of
a public service company is the subject of an appeal pursuant to the
provisions of the Machinery Act, or to applicable provisions of federal law, and
the Department of Revenue is restrained by operation of law or by a
court of competent jurisdiction from certifying such the valuation
to the county and the municipalities therein, in the county, the
Department shall use the last property valuation of such the public
service company which that has been so certified in order to
determine the ad valorem tax levies applicable to such public service company
in the county and the municipalities therein. certified.

The chair of each board of county commissioners and the mayor
of each municipality shall report to the Secretary of Revenue information
requested by the Secretary to enable the Secretary to allocate the amount appropriated
by this section. distributed by this subsection. If a county
or municipality fails to make a requested report within the time allowed, the
Secretary may disregard the county or municipality in allocating the amount appropriated
by this section. distributed by this subsection.

(c)Use of Revenue.
- The amount distributed to each county and municipality shall be used by
the county or municipality in proportion to property tax levies made by it for
the various funds and activities of the county or municipality, unless the
county or municipality has pledged the amount to be distributed to it under
this section in payment of a loan agreement with the North Carolina Solid Waste
Management Capital Projects Financing Agency. A county or municipality
that has pledged amounts distributed under this section in payment of a loan
agreement with the Agency may apply the amount the loan agreement requires.

(b)(d)Definition. - For purposes
of this section, the term 'municipality' includes any urban service district
defined by the governing board of a consolidated city-county, and the amounts
due thereby shall be distributed to the government of the consolidated
city-county."

(b) Effective July 1,
1995, G.S. 105-275.1(b) reads as rewritten:

"(b) Subsequent
Distributions. - As soon as practicable after January 1, 1990, the Secretary
shall pay to each county and city the amount it received under subsection (a)
in 1989 plus an amount equal to the county or city average rate multiplied by
the value of the items described in subdivisions (ii) and (iii) of subsection
(a) that were required to be listed and assessed as of January 1, 1987, and
were listed on or before September 1, 1987, in the county or city, plus or
minus the percentage of this product that equals the percentage by which State
personal income has increased or decreased during the most recent 12-month
period for which State personal income data has been compiled by the Bureau of
Economic Analysis of the United States Department of Commerce. As soon as
practicable after January 1, 1990, the Secretary shall also pay to each county
and city an amount equal to the average rate for each special district for
which the county or city collected taxes in 1987, but whose tax rates were not
included in the county or city's rates, multiplied by the value of the items
described in subdivisions (ii) and (iii) of subsection (a) that were required
to be listed and assessed as of January 1, 1987, and were listed on or before
September 1, 1987, in the district, plus or minus the percentage of this
product that equals the percentage by which State personal income has increased
or decreased during the most recent 12-month period for which State personal
income data has been compiled by the Bureau of Economic Analysis of the United
States Department of Commerce. As soon as practicable after January 1,
1991, except as provided in subsection (f), the Secretary shall pay to each
county and city the amount it received under this section the preceding year
plus an amount equal to the county or city average rate multiplied by the value
of the items described in subdivision (v) of subsection (a) contained in the
list submitted by the county or city, plus or minus the percentage of this
product that equals the percentage by which State personal income has increased
or decreased during the most recent 12-month period for which State personal
income data has been compiled by the Bureau of Economic Analysis of the United
States Department of Commerce. As soon as practical after January 1,
1992, except as provided in subsection (f), the Secretary shall distribute to
each county and city the amount it received under this section the preceding
year. On or before April 30, 1993, except as provided in subsection (f),
the Secretary shall distribute to each county and city ninety-nine and
eighty-one one-hundredths percent (99.81%) of the amount it received under this
section the preceding year. Thereafter, until August 1995, except
as provided in subsection (f), on or before April 30 of each year, the
Secretary shall distribute to each county and city the amount it received under
this section the preceding year. On or before August 30, 1995, the
Secretary shall determine for each county and city the amount it received in
April 1995 under this section. Beginning in August 1995 and each year
thereafter, except as provided in subsection (f), the Secretary shall
distribute to each county and city sixty percent (60%) of this amount on or
before August 30 and the remaining forty percent (40%) on or before the
following April 30.

Of the funds received by each county and city pursuant to
this subsection in 1990, the portion that was received because the county or
city was collecting taxes for a special district (either because the district's
tax rate was included in the city or county's rate or because the Secretary
paid the county or city the product of the district's average rate and the
value of the inventories and other items in the district) shall be distributed
among the districts in the county or city as soon as practicable after the city
or county receives the funds. The county or city shall distribute to each
special district in the county or city the amount it distributed to the
district in 1989 plus an amount equal to the average rate for the district
multiplied by the value of the items, other than inventory, described in
subdivisions (ii) and (iii) of subsection (a) that were required to be listed
and assessed as of January 1, 1987, and were listed on or before September 1,
1987, in the district, plus or minus the percentage of this product that equals
the percentage by which State personal income has increased or decreased during
the most recent 12-month period for which State personal income data has been
compiled by the Bureau of Economic Analysis of the United States Department of
Commerce.

Each year thereafter, until August 1995, as soon as
practicable after receiving funds under this subsection, every county and city
shall distribute among the special districts for which the county or city
collects tax an amount equal to the amount it distributed among such districts
the previous year. Each year thereafter, beginning in August 1995, as
soon as practical after receiving funds under this subsection in August, every
county and city shall distribute among the special districts for which the
county or city collects tax an amount equal to sixty percent (60%) of the
amount it distributed among such districts in April 1995, and as soon as
practicable after receiving funds under this subsection in April, every county
and city shall distribute among the special districts for which the county or
city collects tax an amount equal to forty percent (40%) of the amount it
distributed among such districts in April 1995. The

The Local Government Commission may adopt rules for
the resolution of disputes and correction of errors in the distribution among
special districts provided in this subsection. In addition, the Local
Government Commission may adopt rules for the reallocation of funds when a
special district is dissolved, merged, or consolidated, or when a special
district ceases to levy tax, either temporarily or permanently."

(c) Effective July 1,
1995, G.S. 105-277A(b) reads as rewritten:

"(b) First Per Capita
Distribution. - As soon as practicable after January 1 of 1989, the Secretary
shall distribute to each taxing unit the unit's per capita share of the sum of
fifteen million seven hundred forty-five thousand dollars ($15,745,000).
Thereafter, as soon as practicable after January 1 of 1990 and 1991, the
Secretary shall distribute to each taxing unit the unit's per capita share of
an amount equal to the sum distributed to all taxing units the previous year
under this subsection plus or minus the product of the sum distributed the
previous year and the percentage by which State personal income has increased
or decreased during the most recent 12-month period for which State personal
income data has been compiled by the Bureau of Economic Analysis of the United
States Department of Commerce.

Thereafter, on On or before April 30 of each
year 1992, 1993, 1994, and 1995, the Secretary shall distribute to
each taxing unit the unit's per capita share of the sum that this subsection
provided was to be distributed to all taxing units in 1991. Beginning
August 1995 and each year thereafter, the Secretary shall determine for each
taxing unit the unit's per capita share of the sum that this subsection
provided was to be distributed to all taxing units in 1991. Each year,
the Secretary shall distribute to each taxing unit sixty percent (60%) of this
share on or before August 30 and the remaining forty percent (40%) of this
share on or before the following April 30.

To make the per capita distributions required by this
subsection, the Secretary shall first allocate the sum to be distributed among
the counties on a per capita basis. The Secretary shall then compute a
per capita distributable amount for each county by dividing the amount
allocated to a county by the total population of the county, plus the
population of any incorporated towns and cities located in the county.
Each taxing unit in a county, including the county itself, shall receive the
product of the population of the taxing unit and the per capita distributable
amount for that county.

A city or county that receives funds under this subsection
and that collects taxes for another taxing unit shall distribute part of the
taxes received by it to the taxing unit for which it collects tax. The
distribution shall be made on the basis of the proportionate amount of ad
valorem taxes levied, for the most recent fiscal year beginning July 1, by the
city or county and by all the taxing units for which the city or county
collects tax. This distribution shall be made as soon as practicable
after a city or county receives funds from the State under this section."

(d) Effective July 1,
1995, G.S. 105-277A(c) reads as rewritten:

"(c) Second Per Capita
Distribution. - On or before March 20, 1989, the Secretary shall allocate to
each county the county's per capita share of the sum of thirty-nine million
dollars ($39,000,000).

Each year thereafter, thereafter through April
1995, on or before April 30, the Secretary of Revenue shall allocate to
each county the amount it received the previous year under this
subsection. On or before August 30, 1995, the Secretary shall
determine for each county the amount it received in April 1995 under this
subsection. Beginning in August 1995 and each year thereafter, the
Secretary shall distribute sixty percent (60%) of this amount to each county on
or before August 30 and the remaining forty percent (40%) to each county on or
before the following April 30.

Amounts allocated to a county under this subsection shall in
turn be divided and distributed between the county and the cities located in
the county in proportion to the total amount of ad valorem taxes levied by each
during the fiscal year preceding the distribution. For the purposes of
this section, the amount of the ad valorem taxes levied by a county or city
shall include any ad valorem taxes collected by the county or city in behalf of
a special district. For the purpose of computing the distribution for any
year with respect to which the property valuation of a public service company
is the subject of an appeal and the Department of Revenue is restrained by law
from certifying the valuation to the appropriate counties and cities, the
Department shall use the latest property valuation of that public service
company that has been certified.

The governing body of each county and city shall report to
the Secretary of Revenue such information as he may request in order to make
the distribution under this subsection. If a county or city fails to make
a requested report within the time prescribed, the Secretary may disregard that
county or city and the other taxing units in the county or city in making the
distribution."

(e) Effective July 1,
1995, G.S. 105-277A(c1) reads as rewritten:

"(c1) Claims-based Distribution. - On
or before March 20, 1989, the Secretary shall distribute to each county and
city an amount equal to the amount by which the county or city's inventory
loss, as defined in subsection (d) of this section, exceeds the amount of the
reimbursement received by the county or city under subsection (c) of this subsection.
section.

Except as provided in subsection (g) of this section, each
year thereafter, thereafter through April 1995, on or before
April 30, the Secretary shall distribute to each county and city the amount it
received the previous year under this subsection. On or before August
30, 1995, the Secretary shall determine for each county and city the amount it
received in April 1995 under this subsection. Beginning in August 1995
and each year thereafter, the Secretary shall distribute sixty percent (60%) of
this amount to each county and city on or before August 30 and the remaining
forty percent (40%) of this amount to each county and city on or before the
following April 30."

(f) Effective July
1, 1995, G.S. 105-277A(c2) reads as rewritten:

"(c2) Supplemental Distribution. - On
or before March 20, 1989, the Secretary shall determine, with respect to each
county and city, whether the sum of (i) the amount the county or city received
under subsection (c), plus (ii) the amount the county or city received under
subsection (c1), plus (iii) three and four-tenths percent (3.4%) of the total
distribution received by the county or city under G.S. 105-472, 105-486,
105-501, and Chapter 1096 of the 1967 Session Laws between January 1, 1988, and
December 31, 1988, is less than ninety percent (90%) of the amount of taxes the
county or city actually levied on inventories owned by retailers and
wholesalers for the 1987-88 tax year. If that sum is less than ninety percent
(90%) of the amount of taxes the county or city actually levied on those
inventories for the 1987-88 tax year, the Secretary shall distribute to that
county or city a supplemental amount equal to the amount by which ninety
percent (90%) of the taxes it actually levied on inventories owned by retailers
and wholesalers for the 1987-88 tax year exceeds the total of subdivisions (i),
(ii), and (iii).

Except as provided in subsection (g) of this section, each
year thereafter, thereafter through April 1995, on or before
April 30, the Secretary shall distribute to each county and city the amount it
received the previous year under this subsection. On or before August
30, 1995, the Secretary shall determine for each county and city the amount it
received in April 1995 under this subsection. Beginning in August 1995
and each year thereafter, the Secretary shall distribute sixty percent (60%) of
this amount to each county and city on or before August 30 and the remaining
forty percent (40%) of this amount to each county and city on or before the
following April 30."

(g) Effective July 1,
1995, G.S. 105-113.82 reads as rewritten:

"§
105-113.82. Appropriation of amount equal to Distribution of part
of beer and wine taxes.

(a) Amount, Method. - An
amount equal to the following percentages of the net amount of excise taxes
collected, during the period that began October 1, 1989, and ended September
30, 1990, The Secretary shall distribute annually the following
percentages of the net amount of excise taxes collected on the sale of malt
beverages and wine, wine during the preceding 12-month period ending
March 31, less the amount of the net proceeds credited to the Department of
Agriculture under G.S 105-113.81A, is annually appropriated from the General
Fund to the counties and cities in which the retail sale of these beverages
is authorized:

If malt beverages, unfortified wine, or fortified wine may be
licensed to be sold at retail in both a county and a city located in the
county, both the county and city shall receive a portion of the amount appropriated,
distributed, that portion to be determined on the basis of
population. If one of these beverages may be licensed to be sold at retail
in a city located in a county in which the sale of the beverage is otherwise
prohibited, only the city shall receive a portion of the amount appropriated,
distributed, that portion to be determined on the basis of
population. The amount of the appropriation to be amounts distributed
under subdivisions (1), (2), and (3) shall be computed separately.

(b) Reduction in Appropriation.Amount
Distributed. - Where the sale of malt beverages, unfortified wine, or
fortified wine is prohibited in a defined area of a city or county in which the
sale of the beverage is authorized, the amount that would otherwise be appropriated
distributed to the city or county on the basis of population under
subsection (a) shall be reduced in the same ratio that the area of the defined
area bears to the total area of the city or county, unless the defined area is
a city. If the defined area in a county is a city, the reduction in the
amount that would otherwise be appropriated distributed to the
county under subsection (a) shall be based on population instead of area.

(c) Exception. -
Notwithstanding subsection (a), in a county in which ABC stores have been
established by petition, the amount appropriated revenue shall be
distributed as though the entire county had approved the retail sale of a
beverage whose retail sale is authorized in part of the county.

(d) Time. - The appropriation
revenue shall be distributed to cities and counties within 60 days
after September 30 March 31 of each year.

(e) Population Estimates.
- To determine the population of a city or county for purposes of the
distribution required by this section, the Secretary shall use the most recent
annual estimate of population certified by the State Budget Officer.

(f) City Defined. -
As used in this section, the term 'city' means a city as defined in G.S.
153A-1(1) or an urban service district defined by the governing body of a
consolidated city-county.

(g) Use of Funds. - Funds
appropriated distributed to a county or city under this section
may be used for any public purpose.

(h)Act. - The
appropriation made by this section shall be included in the Current Operations
Appropriations Act."

"(d) Appropriation.
There is annually appropriated from the General Fund Distribution.
- For the purpose of this subsection, the term 'distribution amount' means three
and nine hundredths percent (3.09%) of the taxable gross receipts derived
during a period by an electric power company and a natural gas company from
sales within a municipality of the commodities and services described in
subsection (a) of this section. The Secretary shall distribute to
each municipality the distribution amount for that municipality for the
preceding calendar quarter less an amount equal to one-fourth of the excess of
the distribution amount for that municipality for the period April 1, 1994, to
March 31, 1995, over the distribution amount for that municipality for the
period April 1, 1990, to March 31, 1991, as certified by the Secretary. an
amount that equals three and nine hundredths percent (3.09%) of the taxable
gross receipts derived, from April 1, 1990, to March 31, 1991, by an electric
power company and a natural gas company from sales within the municipality of
the commodities and services described in subsection (a). The Secretary of
Revenue shall transfer the amount appropriated to a municipality in
quarterly installments on or before September 15, December 15, March 15, and
June 15 in proportion to the taxable gross receipts derived within the
municipality during the preceding calendar quarter. distribute the
revenue within 75 days after the end of each quarter. If a company's
report does not state the company's taxable gross receipts derived within a
municipality, the Secretary of Revenue shall determine a practical
method of allocating part of the company's taxable gross receipts to the
municipality. Before transferring the amount appropriated by this
subsection, the Secretary of Revenue shall certify the amount to be transferred
to the State Controller. The appropriation made by this subsection shall
be included in the Current Operations Appropriations Act.

As used in this subsection, the term 'municipality' includes
an urban service district defined by the governing board of a consolidated
city-county. The amount due an urban service district shall be
distributed to the governing board of the consolidated city-county."

"(c) Appropriation. -
There is annually appropriated from the General Fund Distribution. - For
the purpose of this subsection, the term 'distribution amount' means three and
nine hundredths percent (3.09%) of the taxable gross receipts derived during a
period from local telecommunications service provided within a
municipality. The Secretary shall distribute to each municipality the
distribution amount for that municipality for the preceding calendar quarter
less an amount equal to one-fourth of the excess of the distribution amount for
that municipality for the period April 1, 1994, to March 31, 1995, over the
distribution amount for that municipality for the period April 1, 1990, to
March 31, 1991, as certified by the Secretary. an amount that
equals three and nine hundredths percent (3.09%) of the taxable gross receipts
derived, from April 1, 1990, to March 31, 1991, from local telecommunications
service provided within the municipality. The Secretary of Revenue
shall transfer the amount appropriated to a municipality in quarterly
installments on or before September 15, December 15, March 15, and June 15 in
proportion to the taxable gross receipts derived within the municipality during
the preceding calendar quarter. distribute the revenue within 75 days
after the end of each quarter. If a company's report does not state
the company's taxable gross receipts derived within a municipality, the
Secretary of Revenue shall determine a practical method of allocating
part of the company's taxable gross receipts to the municipality. Before
transferring the amount appropriated by this subsection, the Secretary of
Revenue shall certify the amount to be transferred to the State
Controller. The appropriation made by this subsection shall be included
in the Current Operations Appropriations Act.

As used in this subsection, the term 'municipality' includes
an urban service district defined by the governing board of a consolidated
city-county. The amount due an urban service district shall be
distributed to the governing board of the consolidated city-county."

(j) G.S
105-277A(d)(5) reads as rewritten:

"(5) 'Taxing unit' means a
unit that levied a property tax or for which another unit collected a property
tax for the fiscal year beginning July 1 of the year preceding the date
fiscal year a distribution is made under this section."

(k) G.S. 105-213.1(d)
reads as rewritten:

"(d) Source. - Funds
distributed under this section shall be drawn from collections received under
Division I II of Article 4 of this Chapter."

(l) Subsections (h)
and (i) become effective July 1, 1995, and apply beginning with taxes collected
during the calendar quarter ending June 30, 1995. Subsection (k) of this
section is effective upon ratification. The remaining subsections of this
section become effective July 1, 1995.

PART 7. DEPARTMENT OF
ADMINISTRATION

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

STATE CAPITOL RESTORATION

Sec. 27. For all construction projects concerning
restoration of the North Carolina State Capitol, the Department of
Administration may prequalify bidders.

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

OFFICE OF MARINE AFFAIRS' TRANSFER
TO THE DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Sec. 28. (a) G.S. 143B-279.3(a) is amended by
adding a new subdivision to read:

"(14)Office of Marine Affairs,
Department of Administration."

(b) G.S. 143B-279.3(b) is
amended by adding a new subdivision to read:

(d) Part 8A of Article 9
of Chapter 143B of the General Statutes, G.S. 143B-390.2 through G.S.
143B-390.4, is recodified as Part 5B of Article 7 of Chapter 143B of the
General Statutes, G.S. 143B-289.20 through G.S. 143B-289.22.

(e) G.S. 143B-390.2, as
recodified as G.S. 143B-289.20 by subsection (d) of this section, reads as
rewritten:

(a) The Office shall be
organized as prescribed by the Secretary of Administration the
Department of Environment, Health, and Natural Resources and exercise the
following powers and duties:

(1) Repealed by Session
Laws 1991, c. 320, s. 3.

(1a) To establish and maintain the
North Carolina Aquariums;

(1b) To administer the operations of
the North Carolina Aquariums, such administrative duties to include, but not be
limited to the following:

a. Adopt goals
and objectives for the Aquariums and review and revise these goals and
objectives periodically;

b. Review and
approve requests for use of the Aquarium facilities and advise the Secretary of
Administration the Department of Environment, Health, and Natural
Resources on the most appropriate use consistent with the goals and
objectives of the Aquariums;

c. Continually
review and evaluate the types of projects and programs being carried out in the
Aquarium facilities and determine if the operation of the facilities is in
compliance with the established goals and objectives;

d. Recommend
to the Secretary of Administration the Department of Environment,
Health, and Natural Resources any policies and procedures needed to assure
effective staff performance and proper liaison among Aquarium facilities in
carrying out the overall purposes of the Aquarium programs;

e. Review
Aquarium budget submissions to the Secretary of Administration; the
Department of Environment, Health, and Natural Resources;

f.
Recruit and recommend to the Secretary of Administration the
Department of Environment, Health, and Natural Resources candidates for the
positions of directors of the North Carolina Aquariums; and

g. Create
local advisory committees in accordance with the provisions of G.S. 143B-390.4.
143B-289.22.

(2)Provide
staff to the North Carolina Council on Ocean Affairs in furtherance of the
Council's statutory powers and duties;

(3)Advise the
Secretary of Administration regarding the analysis, planning and implementation
of current and future State and federal goals, policies and programs relating
to the ocean and marine resources of North Carolina, such duties to include,
but not be limited to, giving advice regarding:

c.Coordinating
necessary legal or technical research to carry out the duties set forth in this
subdivision.

(4) to (6) Repealed by
Session Laws 1991, c. 320, s. 3.

(7) Assume any other
powers and duties assigned to it by the Secretary.

(b) The Secretary may
adopt any rules and procedures necessary to implement this section."

(f) G.S.
143B-390.4, as recodified as G.S. 143B-289.22 by subsection (d) of this section
reads as rewritten:

"§
143B-289.22. Local advisory committees; duties; membership.

Local advisory committees created pursuant to G.S.
143B-390.2(a)(1b) G.S. 143B-289.20(a)(1b) shall assist each North
Carolina Aquarium in its efforts to establish projects and programs and to
assure adequate citizen-consumer input into those efforts. Members of
these committees shall be appointed by the Secretary of Administration the
Department of Environment, Health, and Natural Resources for three-year
terms from nominations made by the Director of the Office of Marine
Affairs. Each committee shall select one of its members to serve as
chairperson. Members of the committees shall serve without compensation
for services or expenses."

(g) Part 8B of Article 9
of Chapter 143B of the General Statutes is repealed.

(h) Part 8C of Article 9
of Chapter 143B of the General Statutes, G.S. 143B-390.15 through G.S.
143B-390.16, is recodified as Part 28 of Article 7 of Chapter 143B of the
General Statutes, G.S. 143B-344.16 through G.S. 143B-344.17.

(i) G.S.
143B-390.16, as recodified as G.S. 143B-344.17 by subsection (h) of this
section, reads as rewritten:

(1) Four members appointed
by the Governor, including one member designated by the Governor to serve as
chair of the Commission and one member appointed upon recommendation of the
North Carolina Aquarium Society, Inc., who resides in one of the counties where
the North Carolina Aquariums are located: Carteret, Dare, and New
Hanover,

(2) Four members appointed
by the General Assembly upon the recommendation of the Speaker of the House of
Representatives in accordance with G.S. 120-121, including one member appointed
upon the recommendation of the North Carolina Aquarium Society, Inc., who
resides in another of the counties where the North Carolina Aquariums are
located: Carteret, Dare, and New Hanover,

(3) Four members appointed
by the General Assembly upon the recommendation of the President Pro Tempore of
the Senate in accordance with G.S. 120-121, including one member appointed upon
the recommendation of the North Carolina Aquarium Society, Inc., who resides in
another of the counties where the North Carolina Aquariums are located:
Carteret, Dare, and New Hanover.

(b) Commission members
shall serve for terms of four years, beginning July 1, 1992, and may be removed
at any time by the appointing authority. If a vacancy on the Commission
occurs, the appointing authority shall appoint a replacement to serve for the
unexpired term.

(c) The Commission shall
meet upon the call of the chair.

(d) The Secretary of Administration
the Department of Environment, Health, and Natural Resources shall
provide staff support for Commission activities and travel reimbursement for
Commission members.

(e) The Commission may
recommend a schedule of uniform fees for the North Carolina Aquariums to the
Secretary of the Department of Administration Environment, Health,
and Natural Resources who may adopt the schedule. The schedule may be
revised from time to time by the same procedure.

(f) The North Carolina
Special Aquariums Fund, hereafter 'Fund', is hereby created, and shall be a
special and nonreverting fund. The Fund shall be used only for repair,
maintenance, and educational exhibit construction at existing aquariums.
The Fund may also be used to match private funds that are raised for these
purposes.

(g) All entrance fee
receipts shall be credited to the Fund. The Secretary of Administration
the Department of Environment, Health, and Natural Resources may
expend monies from the Fund only upon the authorization of the General
Assembly."

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

DEPARTMENT OF ADMINISTRATION
EMPLOYEE TRAINING

Sec. 29. Of the funds appropriated for Travel
Expenses in the Division of Information Services, Department of Administration,
during fiscal year 1993-94 and fiscal year 1994-95, at least three thousand
dollars ($3,000) per year shall be used to support employee training.

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

ALLOCATION OF RAPE CRISIS CENTER
FUNDS

Sec. 30. All funds for the Rape Crisis Centers
appropriated to the Department of Administration, the North Carolina Council
for Women, for the 1993-94 fiscal year and the 1994-95 fiscal year in this act
shall be available to Rape Crisis Centers providing direct services to victims
of sexual assault and rape prevention services. Funds shall be awarded
according to criteria established by the Department of Administration.
Grants shall be awarded by September 1 each fiscal year and the funds shall be
disbursed on a quarterly basis.

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

DOMESTIC VIOLENCE CENTER FUNDS

Sec. 31. The funds appropriated in this act to the
Department of Administration, the North Carolina Council for Women, for the
1993-94 fiscal year and for the 1994-95 fiscal year for domestic violence
centers shall be allocated equally among domestic violence centers in operation
on July 1, 1990, that offer services including a hotline, transportation
services, community education programs, daytime services, and call forwarding
during the night and that fulfill other criteria established by the Department
of Administration. Grants shall be awarded based on criteria established
by the Department of Administration and disbursed on a quarterly basis.
The North Carolina Coalition against Domestic Violence, Incorporated, is
eligible for a grant of ten thousand dollars ($10,000) under this section.

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

PARKING REVENUES

Sec. 32. The Secretary of Administration may use
funds from parking revenues that are in excess of parking system expense
requirements to fund the ten dollar ($10.00) per month subsidies for vanpools
and transit passes.

"Sec. 5. Funds for counties without organizations
which meet the necessary standards set by the Department of Cultural Resources
shall be retained by the department and used for arts programming within these
counties. Where feasible, the department shall maintain the same per
capita rate for distribution of funds to these counties and shall require the
same matching ratio. No State funds appropriated for the programs set
forth in this act shall be used to pay for personnel positions."

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

CULTURAL RESOURCES SECURITY
OFFICERS

Sec. 34. On July 1, 1994, the Department of
Cultural Resources shall redefine the job responsibilities of its security
positions so that the services of a certified law enforcement officer are no
longer required, and shall accordingly discontinue payments to the Law
Enforcement Officers' Retirement System.

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

DEPARTMENT OF CULTURAL RESOURCES
VEHICLES

Sec. 35. On or before December 30, 1993, the
Department of Cultural Resources shall transfer ownership of all vans, pickups,
utility vehicles, and similar passenger-carrying vehicles to the Division of
Motor Fleet Management, Department of Administration.

Sec. 37. The Department of Cultural Resources shall
use funds appropriated in this act to the Department for the North Carolina
Symphony to expand symphony programs into economically depressed rural counties
and low-wealth school administrative districts.

The Department shall reduce by one-half any fee customarily
paid by a sponsor for a performance by the North Carolina Symphony if:
(i) the sponsor is located in an economically depressed county or a low-wealth
school administrative district and (ii) the symphony has not performed in that
county or local school administrative district during the calendar year in
which the request is made.

Sec. 38. A grant to a local library system from the
Aid to Public Libraries Fund shall not be terminated but shall be reduced
proportionately by the Department of Cultural Resources if the local funding
for a public library was reduced by the local governing body as part of an
overall general budgetary reduction reflecting local economic conditions and
local government fiscal constraints.

Sec. 39. (a) Of the funds appropriated in this act
to the Office of State Planning, eight hundred sixty-four thousand two hundred
seventy dollars ($864,270) for the 1993-94 fiscal year and eight hundred
sixty-four thousand two hundred seventy dollars ($864,270) for the 1994-95
fiscal year shall only be used as provided by this section. Each regional
council of government or lead regional organization is allocated up to
forty-eight thousand fifteen dollars ($48,015) for each fiscal year, with the
actual amount calculated as provided in subsection (b) of this section.

(b) The funds shall be
allocated as follows: A share of the maximum forty-eight thousand fifteen
dollars ($48,015) each fiscal year shall be allocated to each county and
smaller city based on the most recent annual estimate of the Office of State
Budget and Management of the population of that county (less the population of
any larger city within that county) or smaller city, divided by the sum of the
total population of the region (less the population of larger cities within
that region) and the total population of the region living in smaller
cities. Those funds shall be paid to the regional council of government
for the region in which that city or county is located upon receipt by the
Office of State Planning of a resolution of the governing board of the county
or city requesting release of the funds. If any city or county does not
so request payment of funds by June 30 of a State fiscal year, that share of
the allocation for that fiscal year shall revert to the General Fund.

(c) A regional council of
government may use funds appropriated by this section only to assist local
governments in grant applications, economic development, community development,
support of local industrial development activities, and other activities as
deemed appropriate by the member governments.

(d) Funds appropriated by
this section may not be used for payment of dues or assessments by the member
governments, and may not supplant funds appropriated by the member governments.

(e) As used in this
section "Larger City" means an incorporated city with a population of
50,000 or over. "Smaller City" means any other incorporated
city.

Sec. 39.1. (a) It is the intent of the General Assembly
that the North Carolina Center for World Languages and Cultures, which is to be
located at Pfeiffer College in Misenheimer, Stanly County, become a
self-supporting enterprise. No State funds shall be used for capital
construction unless approved by the General Assembly. The funds appropriated by
this act to the Office of the Governor for the North Carolina Center for World
Languages and Cultures for the 1993-94 fiscal year and for the 1994-95 fiscal
year are contingent upon the receipt of matching funds as follows:

(1) $250,000 for the
1993-94 fiscal year shall be matched by a gift of real estate to the State of
no less than 25 acres of land.

(2) $250,000 for the
1994-95 fiscal year shall be matched on a dollar-for-dollar basis by non-State
funds.

(3) Upon full satisfaction
of the match requirements of subdivision (2) of this section, an additional
$250,000 for the 1994-95 fiscal year shall be allocated for the World Language
Center.

(b) The land conveyed to
the State by Pfeiffer College to satisfy the matching requirement in subsection
(a) of this section shall revert to Pfeiffer College if the land ceases to be
used as the site of the North Carolina Center for World Languages and Cultures
and the deed conveying that property to the State shall include a reversion
clause to that effect.

Sec. 39.2. Of the funds appropriated in this act to
the Office of the Governor for Cities in Schools, the sum of one hundred fifty
thousand dollars ($150,000) shall be matched by non-State funds on the basis of
one non-State dollar for every State dollar.

(1) Develop standards that
outline what a high school graduate should know and a series of benchmarks
throughout the K-12 grades structured to identify how well a student is
progressing towards the graduation standards. Standards shall include how
well a student is able to apply knowledge gained in such core subject areas as
mathematics, science, communication, history, geography, and the arts.

(2) Define a system of
benchmarks at appropriate grade levels requiring students to demonstrate an
ability to understand and apply what is expected of them in these standards.

(3) Work with the
Department of Public Instruction to ensure that end-of-course assessments for
core subjects are consistent with these standards and with benchmarks set by
the Commission leading to these standards.

(4) Review and recommend a
system of benchmark measurements that appropriately assess the requirements as
outlined in subdivisions (2) and (3) of this subsection. The Commission
may consider multiple methods of developmental assessment.

(5) Recommend ways to
ensure that each student is challenged to the fullest extent of the student's
ability by describing what actions shall be taken when a student's level of
achievement on a standard is less than the student's potential. The
Commission shall estimate the number of students for whom these actions should
be taken each year and the cost of doing so.

(6) Recommend methods to
measure each high school graduate's performance on the standards, including a
system that incorporates a variety of measurement instruments used to assess a
student's progress throughout the student's school career. These measures
may be used to assess a graduate's preparedness for work, continued schooling,
and successful living. The Commission shall estimate the number of
students who are unlikely to meet the performance standards for high school
graduation each year, describe what actions should be taken to enable these
students to meet the standards, and estimate the cost of those actions.

(7) Consider how the
system of standards can serve the needs of exceptional children.

(8) Consider and recommend
any necessary refinements to the substance or implementation of the Standard
Course of Study and the Testing Program.

(9) Recommend the best
methods of comparing North Carolina students' performance to that of students
in other states and across the nation.

(10) Recommend how standards and
performance measures can accommodate the growing and changing body of
knowledge.

(11) Recommend any necessary statutory
amendments to implement its recommendations."

"(3) The Commission shall
annually advise the General Assembly, the Governor, and the State Board of
Education on the standards and assessments. In its report, the
Commission shall estimate (i) the number of students each year who are unlikely
to achieve at their potential and the cost of the actions that should be taken
to enable these students to achieve at their potential, and (ii) the number of
students who are unlikely to meet the performance standards for high school
graduation each year and the cost of the actions that should be taken to enable
these students to meet the standards."

"Sec. 2. This act becomes effective upon appropriation
by the General Assembly of funds for the implementation of this act. July
1, 1993. The Commission created by this act terminates December 31,
2000."

(d) The North Carolina
Education Standards and Accountability Commission shall report quarterly to the
Joint Legislative Education Oversight Committee regarding the progress being
made on the development of standards, benchmarks, and related assessments and
the progress in incorporating those standards into existing classrooms.

Sec. 40. Appropriations to the Department of
Insurance in this act shall be repaid to the General Fund from the Department
of Insurance Fund in equal quarterly installments, except that the final
installment of the fiscal year shall be reduced by the difference between the
amount appropriated and actual expenditures in that fiscal year. Notwithstanding
provisions in Section 10 of this act, departmental receipts realized by the
Department of Insurance in excess of amounts approved for expenditure by the
General Assembly, as adjusted by the Office of State Budget and Management to
reflect the distribution of statewide reserves, shall revert to the General
Fund at the end of each fiscal year.

Requested by: Representatives Crawford, Wainwright,
Senator Plexico

FIRE/RESCUE COMMISSION STAFF

Sec. 41. G.S. 58-78-5(a) reads as rewritten:

"(a) The Commission shall
have the following powers and duties:

(1) To formally adopt a
State Fire Education and Training Plan, a State Master Plan for Fire Prevention
and Control, a Rescue Training Plan, and a State Master Plan for Rescue
Services;

(2) To assist and
participate with State and local fire prevention and control agencies in the
improvement of fire prevention and control in North Carolina and to work with
State and local rescue agencies to improve rescue services in the State;

(3) To increase the
professional skills of fire protection and fire-fighting personnel and rescue
personnel;

(4) To encourage public
support for fire prevention and control and rescue services;

(5) To accept gifts,
bequests, devises, grants, matching funds, and other considerations from
private or governmental sources for use in promoting its work;

(6) To make grants for use
in pursuing its objectives, under such conditions as are deemed to be necessary
and such other powers as may be necessary to carry out the State's duties with
respect to all grants to the State by theUnited States Fire
Administration and the National Fire Academy; and all support programs brought
into the State by these two entities shall be coordinated and controlled by the
Commission;

(7) To make studies and
recommendations for the improvement of fire prevention and control and rescue
services in the State and to make studies and recommendations for the
coordination and implementation of effective fire prevention and control and
rescue services and for effective fire prevention and control and rescue
services education;

(8) To set objectives and
priorities for the improvement of fire prevention and control and rescue
services throughout the State;

(9) To advise State and
local interests of opportunities for securing federal assistance for fire
prevention and control and rescue services and for improving fire prevention
and control and rescue services administration and planning within the State of
North Carolina;

(10) To assist State agencies and
institutions of local government and combinations thereof in the preparation
and processing of applications for financial aid and to support fire prevention
and control, rescue services, and planning and administration;

(11) To encourage and assist
coordination at the federal, State and local government levels in the
preparation and implementation of fire prevention and control and rescue
services administrative improvements and crime reduction plans;

(12) To apply for, receive, disburse
and audit the use of funds received from any public and private agencies and
instrumentalities for fire prevention and control and rescue services, their
administration and plans therefor;

(13) To enter into monitoring and
evaluating the results of contracts and agreements necessary or incidental to
the discharge of its assigned responsibilities;

(14) To provide technical assistance
to State and local fire prevention and control and rescue agencies in developing
programs for improvement;

(14a) To serve as a central office for the
collection and dissemination of information relative to fire service and rescue
service activities and programs in State government. All State government
agencies conducting fire service and rescue service related programs and
activities shall report the status of these programs and activities to the
Commission on a quarterly basis and they shall also report to the Commission
any new programs or changes to existing programs as they are implemented;

(14b) To establish voluntary minimum professional
qualifications for all levels of fire service and rescue service personnel;

(14c) To prepare an annual report to the Governor
on its fire prevention and control activities and plans, rescue activities and
plans, and to recommend legislation concerning fire prevention and control and
rescue services; and

(14d)To reimburse the members of the
Commission's certification board, in accordance with G.S. 138-5, for travel and
subsistence expenses incurred by them in their duties as certification board
officers; and

(15) To take such other actions as may
be deemed necessary or appropriate to carry out its assigned duties and
responsibilities."

Requested by: Representatives Crawford, Wainwright,
Senator Plexico

STATE CONTROLLER REVIEW OF
INSURANCE CHART OF ACCOUNTS

Sec. 42. The Office of the State Controller as
authorized by G.S. 143B-426.39 and this section shall review the chart of
accounts used by the Department of Insurance and shall report to the 1993
General Assembly and to the Department of Insurance by March 1, 1994, the
findings and recommendations of the State Controller's Office regarding changes
needed to align the accounting practices in the Department of Insurance with
standards of the Government Accounting Standards Board and generally accepted
principles of governmental accounting used within the State's accounting
system.

PART 11. OFFICE OF THE
LIEUTENANT GOVERNOR

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

CERTAIN LIEUTENANT GOVERNOR
APPROPRIATIONS NOT TO BE TRANSFERRED

Sec. 43. Funds appropriated to the Office of
Lieutenant Governor for Other Services and for Service and Maintenance
Contracts shall not be transferred to other objects of expenditure.

PART 12. DEPARTMENT OF
REVENUE

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

REVENUEFIELD OFFICE
CLOSURES AND CONSOLIDATIONS

Sec. 44. The Department of Revenue shall thoroughly
analyze the effect of field office closures and consolidations executed
pursuant to recommendations by the Government Performance Audit Committee, and
shall report its findings to the General Assembly on or before March 31,
1994. At a minimum, the report shall present evidence relevant to the following
issues:

(1) The impact of
consolidation on tax compliance rates;

(2) Changes in collections
resulting from the loss of personal contact between taxpayers and Department of
Revenue personnel engaged in taxpayer assistance; and

(3) Increases in operating
efficiency made possible by shifting to a smaller number of larger offices.

The General Assembly intends that
this study by the Department of Revenue shall be considered, together with
other relevant data, to determine whether a continued strategy of field office
consolidation is in the public interest.

PART 13. OFFICE OF STATE
AUDITOR

Requested by: Senator Plexico, Representatives Crawford,
Wainwright

INFORMATION FROM PRIVATE ORGANIZATIONS
RECEIVING STATE FUNDS; INFORMATION FROM STATE DEPARTMENTS AND AGENCIES
PROVIDING STATE FUNDS

Sec. 45. G.S. 143-6.1 reads as rewritten:

"§
143-6.1. Information from private organizations receiving State funds;
information from State departments and agencies providing State funds.

Every corporation, organization, and institution which
receives, uses or expends any State funds shall use or expend such funds only
for the purposes for which such State funds were appropriated by the General
Assembly or collected by the State. State funds include federal funds
that flow through the State.

Each corporation, organization, and institution which
receives, uses or expends State funds in the amount of twenty-five thousand
dollars ($25,000) or more annually, except when the funds are for the purchase
of goods or services, shall file annually with the State Auditor and with the
Joint Legislative Commission on Governmental Operations financial statements in
such form and on such schedule as shall be prescribed by the State Auditor, and
for that year in which twenty-five thousand dollars ($25,000) or more in
State funds were received, used, or expended. These financial statements
shall be audited in accordance with the auditing standards prescribed by the
State Auditor, and the audit report shall be received by the State Auditor
within six months after the end of the private organization's year in which
twenty-five thousand dollars ($25,000) or more were received, used, or
expended. Each corporation, organization, and institution shall
furnish to the State Auditor for audit all books, records and other information
as shall be necessary for the State Auditor to account fully for the use and
expenditure of State funds. Each such corporation, organization, and institution
shall furnish such additional financial or budgetary information as shall be
requested by the State Auditor or by the Joint Legislative Commission on
Governmental Operations. The State shall not disburse State funds
appropriated by the General Assembly or collected by the State for use by any private
person, corporation, organization, or institution unless until that
person, corporation, organization, or institution has provided all the
reports and financial information required by this section. All financial
statements furnished to the State Auditor or to the Joint Legislative
Commission on Governmental Operations pursuant to this section, and any audits
or other reports prepared by the State Auditor, shall be public records.

Each State department and agency shall identify to the State
Auditor each corporation, organization, and institution to which State funds
received by the department or agency have been provided, except for the
purchase of goods and services, and submit documents to the State Auditor for
approval in a prescribed format describing standards of compliance and
suggested audit procedures sufficient to give adequate direction to independent
auditors performing audits.

The receipt, use or expenditure of State funds by a
corporation, organization, and institution shall not, in and of itself, make or
constitute such corporation, organization, or institution a State agency."

Sec. 47. (a) Of the funds appropriated from the
General Fund to the Reserve for Salary Increases, the sum of sixty-four million
twenty-seven thousand two hundred fifty-seven dollars ($64,027,257) for the
1993-94 fiscal year and sixty-eight million five hundred twenty-four thousand
six hundred seventy-five dollars ($68,524,675) for the 1994-95 fiscal year
shall be used to provide raises for State employees and school personnel other
than teachers.

(b) Of the funds
appropriated from the Highway Fund to the Reserve for Salary Increases, the sum
of six million nine hundred sixty-three thousand four hundred forty-six dollars
($6,963,446) for the 1993-94 fiscal year and the sum of six million nine
hundred sixty-three thousand four hundred forty-six dollars ($6,963,446) for
the 1994-95 fiscal year shall be used to provide raises for State employees.

(c) Of the funds
appropriated from the General Fund to the Reserve for Salary Increases, the sum
of forty-two million four hundred forty-three thousand two hundred seventeen
dollars ($42,443,217) for the 1993-94 fiscal year and the sum of forty-two
million four hundred forty-three thousand two hundred seventeen dollars
($42,443,217) for the 1994-95 fiscal year shall be used to implement the teacher
salary schedule provided in this act. This is the equivalent of two
percent (2%) of teacher payroll.

(d) Of the funds
appropriated from the Highway Fund to the Reserve for Salary Increases, the sum
of one hundred forty-five thousand seven hundred ten dollars ($145,710) for the
1993-94 fiscal year and the sum of one hundred forty-five thousand seven
hundred ten dollars ($145,710) for the 1994-95 fiscal year shall be used to
implement the teacher salary schedule provided in this act. This is the
equivalent of two percent (2%) of teacher payroll.

(e) Of the funds
appropriated from the General Fund to the Reserve for Salary Increases, the sum
of five million five hundred eighty-one thousand six hundred sixty-eight
dollars ($5,581,668) for the 1993-94 fiscal year and the sum of five million
five hundred eighty-one thousand six hundred sixty-eight dollars ($5,581,668)
for the 1994-95 fiscal year shall be used to implement salary increases for
employees in locally operated State-funded programs as provided in this act.

Sec. 51.
(a) The annual salaries,
payable monthly, for the 1993-94 and 1994-95 fiscal years for the following
executive branch officials are:

Executive Branch OfficialsAnnual Salary

Chairman, Alcoholic Beverage Control

Commission
$74,389

State
Controller
120,301

Commissioner of Motor
Vehicles
74,389

Commissioner of
Banks
74,389

Chairman, Employment Security

Commission
74,389

State Personnel
Director
77,289

Chairman, Parole
Commission
67,926

Members of the Parole
Commission
62,712

Chairman, Industrial
Commission
66,837

Members of the Industrial
Commission
65,209

Executive Director, Agency for Public

Telecommunications
62,712

General Manager, Ports Railway

Commission
56,628

Director, Museum of
Art
76,225

Executive Director, Wildlife Resources

Commission
64,205

Executive Director, North Carolina

Housing Finance
Agency
92,063

Executive Director, North Carolina

Agricultural Finance
Authority
72,406

Director, Office of Administrative

Hearings
65,674.

(b) Any person carrying
on the functions of a position listed in subsection (a) of this section shall
be paid only the salary set out in that subsection, and the mere classification
of the position to be some other position does not allow the salary of that
position to be set in some other manner.

Sec. 52. Effective upon convening of the 1995
Regular Session of the General Assembly, G.S. 120-3 reads as rewritten:

"§ 120-3.
Pay of members and officers of the General Assembly.

(a) The Speaker of the
House shall be paid an annual salary of thirty-five thousand six hundred
twenty-two dollars ($35,622), thirty-six thousand three hundred
thirty-four dollars ($36,334), payable monthly, and an expense allowance of
one thousand three hundred twenty forty-six dollars ($1,320) ($1,346)
per month. The President Pro Tempore of the Senate shall be paid an
annual salary of thirty-five thousand six hundred twenty-two dollars
($35,622), thirty-six thousand three hundred thirty-four dollars
($36,334), payable monthly, and an expense allowance of one thousand three
hundred twenty forty-six dollars ($1,320) ($1,346) per
month. The Speaker Pro Tempore of the House shall be paid an annual
salary of twenty thousand two hundred ninety-eight dollars seven
hundred four dollars ($20,298), ($20,704) payable monthly,
and an expense allowance of seven hundred eighty ninety-six dollars
($780.00) ($796.00) per month. The Deputy President Pro
Tempore of the Senate shall be paid an annual salary of twenty thousand two
hundred ninety-eight dollars seven hundred four ($20,298), ($20,704)
payable monthly, and an expense allowance of seven hundred eighty ninety-six
dollars ($780.00) ($796.00) per month. The majority and
minority leaders in the House and the majority and minority leaders in the
Senate shall be paid an annual salary of fifteen thousand nine hundred
eighteen dollars ($15,918), sixteen thousand two hundred thirty-six
dollars ($16,236) payable monthly, and an expense allowance of six hundred twenty-two
thirty-four dollars ($622.00) ($634.00) per month.

(b) Every other member of
the General Assembly shall receive increases in annual salary only to the
extent of and in the amounts equal to the average increases received by
employees of the State, effective upon convening of the next Regular Session of
the General Assembly after enactment of these increased amounts.
Accordingly, upon convening of the 1993 1995 Regular Session of
the General Assembly, every other member of the General Assembly shall be paid
an annual salary of thirteen thousand twenty-six two hundred
eighty-seven dollars ($13,026), ($13,287) payable monthly,
and an expense allowance of five hundred twenty-two thirty-two dollars
($522.00) ($532.00) per month.

(c) The salary and
expense allowances provided in this section are in addition to any per diem
compensation and any subsistence and travel allowance authorized by any other
law with respect to any regular or extra session of the General Assembly, and
service on any State board, agency, commission, standing committee and study
commission."

"(c) The principal clerks
shall be full-time officers. Each principal clerk shall be entitled to
other benefits available to permanent legislative employees and shall be paid
an annual salary of forty-six thousand six hundred eighty-six dollars
($46,686), forty-seven thousand six hundred twenty dollars ($47,620) payable
monthly. The Legislative Services Commission shall review the salary of
the principal clerks prior to submission of the proposed operating budget of
the General Assembly to the Governor and Advisory Budget Commission and shall
make appropriate recommendations for changes in those salaries. Any
changes enacted by the General Assembly shall be by amendment to this
paragraph."

"(b) The sergeant-at-arms
and the reading clerk in each house shall be paid a salary of two hundred
nineteen dollars ($219.00) two hundred twenty-three dollars ($223.00) per
week, plus subsistence at the same daily rate provided for members of the
General Assembly, plus mileage at the rate provided for members of the General
Assembly for one round trip only from their homes to Raleigh and return.
The sergeants-at-arms shall serve during sessions of the General Assembly and
at such time prior to the convening of, and subsequent to adjournment or recess
of, sessions as may be authorized by the Legislative Services Commission.
The reading clerks shall serve during sessions only."

Sec. 55. The Legislative Administrative Officer may
increase the salaries of nonelected employees of the General Assembly in effect
for fiscal year 1992-93 by an amount equal to two percent (2%). Nothing
in this act limits any of the provisions of G.S. 120-32.

If an acting senior regular resident superior court judge is
appointed under the provisions of G.S. 7A-41, he shall receive the salary for
Judge, Senior Regular Resident, Superior Court, until his temporary appointment
is vacated, and the judge he replaces shall receive the salary indicated for
Judge, Superior Court.

The district attorney or public defender of a judicial
district, with the approval of the Administrative Officer of the Courts, shall
set the salaries of assistant district attorneys or assistant public defenders,
respectively, in that district such that the average salaries of assistant
district attorneys or assistant public defenders in that district do not exceed
forty-six thousand seven hundred thirty-eight dollars ($46,738), and the
minimum salary of any assistant district attorney or assistant public defender
is at least twenty-three thousand eight hundred sixty-two dollars ($23,862)
effective July 1, 1993.

(b) The salaries in
effect for fiscal year 1992-93 for permanent, full-time employees of the
Judicial Department, except for those whose salaries are itemized in this act,
shall be increased by two percent (2%), commencing July 1, 1993.

(c) The salaries in
effect for fiscal year 1992-93 for all permanent, part-time employees of the
Judicial Department shall be increased on and after July 1, 1993, by pro rata
amounts of the two percent (2%).

(a) The clerk of superior
court is a full-time employee of the State and shall receive an annual salary,
payable in equal monthly installments, based on the population of the county as
determined in subsection (a1) of this section, according to the following
schedule:

Population
Annual Salary

'1992-93'

Less than
100,000
$47,442$48,391

100,000 to 199,999 149,99953,55054,621

200,000 and above150,000 to
249,99961,026.62,247

250,000 and above68,256.

When a county changes from one population group to another,
the salary of the clerk shall be changed, on July 1 of the fiscal year for
which the change is reported, to the salary appropriate for the new population
group, except that the salary of an incumbent clerk shall not be decreased by
any change in population group during his continuance in office."

(b) The increase required
for the new annual salaries provided in subsection (a) of this section shall be
funded from funds available to the Administrative Office of the Courts for
fiscal years 1993-94 and 1994-95.

"(c) Notwithstanding the
provisions of subsection (a), the Administrative Officer of the Courts shall
establish an incremental salary plan for assistant clerks and for deputy clerks
based on a series of salary steps corresponding to the steps contained in the
Salary Plan for State Employees adopted by the Office of State Personnel,
subject to a minimum and a maximum annual salary as set forth below. On
and after July 1, 1985, each assistant clerk and each deputy clerk shall be
eligible for an annual step increase in his salary plan based on satisfactory
job performance as determined by each clerk. Notwithstanding the
foregoing, if an assistant or deputy clerk's years of service in the office of
superior court clerk would warrant an annual salary greater than the salary
first established under this section, that assistant or deputy clerk shall be
eligible on and after July 1, 1984, for an annual step increase in his salary
plan. Furthermore, on and after July 1, 1985, that assistant or deputy
clerk shall be eligible for an increase of two steps in his salary plan, and
shall remain eligible for a two-step increase each year as recommended by each
clerk until that assistant or deputy clerk's annual salary corresponds to his
number of years of service. Any person covered by this subsection who
would not receive a step increase in fiscal year 1992-93 1993-94 because
that person is at the top of the salary range as it existed for fiscal year 1990-91
1992-93 shall receive a salary increase to the maximum annual salary
provided for fiscal year 1992-93 by subsection (c1) of this
section."

Sec. 59. G.S. 7A-102(c1) reads as rewritten:

"(c1) A full-time assistant
clerk or a full-time deputy clerk shall be paid an annual salary subject to the
following minimum and maximum rates:

"(1) A full-time
magistrate, so designated by the Administrative Officer of the Courts, shall be
paid the annual salary indicated in the table below according to the number of
years he has served as a magistrate. The salary steps shall take effect
on the anniversary of the date the magistrate was originally appointed:

Table of Salaries of Full-Time
Magistrates

Number of Prior Years of
Service
Annual Salary

'1992-93'

Less than
1
$17,058$17,399

1 or more but
less than
3
17,93418,293

3 or more but
less than
5
19,69820,092

5 or more but
less than
7
21,64222,075

7 or more but
less than
9
23,81424,290

9 or more but
less than
11
26,17826,702

11 or
more
28,75829,333.

A 'Full-time
magistrate' is a magistrate who is assigned to work an average of not less than
40 hours a week during his term of office.

Notwithstanding any
other provision of this subdivision, a full-time magistrate, who was serving as
a magistrate on December 31, 1978, and who was receiving an annual salary in
excess of that which would ordinarily be allowed under the provisions of this
subdivision, shall not have the salary, which he was receiving reduced during
any subsequent term as a full-time magistrate. That magistrate's salary
shall be fixed at the salary level from the table above which is nearest and
higher than the latest annual salary he was receiving on December 31, 1978,
and, thereafter, shall advance in accordance with the schedule in the table
above."

Sec. 61. The Director of the Budget may transfer
from the Reserve for Salary Increases created in this act for fiscal years
1993-94 and 1994-95 funds to the Department of Community Colleges necessary to
provide an average annual salary increase of two percent (2%), including funds
for the employer's retirement and social security contributions, commencing
July 1, 1993, for all permanent full-time community college institutional
personnel supported by State funds. The State Board shall establish
guidelines for providing salary increases to community college institutional
personnel. Salary funds shall be used to provide an average annual salary
increase of two percent (2%) to all full-time employees and part-time employees
on a pro rata basis.

Sec. 62. The Director of the Budget shall transfer
to the Board of Governors of The University of North Carolina sufficient funds
from the Reserve for Salary Increases created in this act for fiscal year
1993-94 and fiscal year 1994-95 to provide an annual average salary increase of
two percent (2%), including funds for the employer's retirement and social
security contributions, commencing July 1, 1993, for all employees of The
University of North Carolina, as well as employees of the North Carolina School
of Science and Mathematics, supported by State funds and whose salaries are
exempt from the State Personnel Act. These funds shall be allocated to individuals
according to the rules adopted by the Board of Governors, or the Board of
Trustees of the North Carolina School of Science and Mathematics, as
appropriate, and may not be used for any purpose other than for salary
increases and necessary employer contributions provided by this section.

Sec. 63. (a) The salaries in effect for fiscal year
1992-93 for all permanent full-time State employees whose salaries are set in
accordance with the State Personnel Act and who are paid from the General Fund
or the Highway Fund shall be increased, on and after July 1, 1993, unless
otherwise provided by this act, by two percent (2%).

(b) Except as otherwise
provided in this act, the fiscal year 1992-93 salaries for permanent full-time
State officials and persons in exempt positions that are recommended by the
Governor or the Governor and the Advisory Budget Commission and set by the
General Assembly shall be increased by two percent (2%), commencing July 1,
1993.

(c) The salaries in
effect for fiscal year 1992-93 for all permanent part-time State employees
shall be increased on and after July 1, 1993, by pro rata amounts of the two
percent (2%) salary increase provided for permanent full-time employees covered
under subsection (a) of this section.

(d) The Director of the
Budget may allocate out of special operating funds or from other sources of the
employing agency, except tax revenues, sufficient funds to allow a salary
increase, on and after July 1, 1993, in accordance with subsections (a), (b),
or (c) of this section, including funds for the employer's retirement and
social security contributions, for the permanent full-time and part-time
employees of the agency, provided the employing agency elects to make available
the necessary funds.

(e) Within regular
Executive Budget Act procedures as limited by this act, all State agencies and
departments may increase on an equitable basis the rate of pay of temporary and
permanent hourly State employees, subject to availability of funds in the
particular agency or department, by pro rata amounts of the two percent (2%)
salary increase provided for permanent full-time employees covered by the
provisions of subsection (a) of this section, commencing July 1, 1993.

(f) The provisions
of this section do not apply to employees whose salaries are determined in
accordance with G.S. 7A-102 or G.S. 20-187.3(a), except for those employees who
would not receive a salary increment for the 1993-94 fiscal year under G.S.
7A-102 or G.S. 20-187.3(a) because they are at the top of their salary range.

Sec. 64. Of the funds appropriated from the General
Fund for the Reserve for Salary Increases in this act for the 1993-94 fiscal
year and the 1994-95 fiscal year, funds shall be made available for employees
in locally operated State funded programs in an amount equivalent to a two
percent (2%) across-the-board salary increase. Such employees do not
receive the compensation bonus provided in this act.

Sec. 65. (a) Superintendents, Assistant
Superintendents, Associate Superintendents, Supervisors, Directors,
Coordinators, Evaluators, and Program Administrators. - The Director of
the Budget may transfer from the Reserve for Salary Increases created in this
act for fiscal year 1993-94 and fiscal year 1994-95 funds necessary to provide
a salary increase of two percent (2%), including funds for the employer's
retirement and social security contributions, commencing July 1, 1993, for all
superintendents, assistant superintendents, associate superintendents,
supervisors, directors, coordinators, evaluators, and program administrators
whose salaries are supported from the State's General Fund. These funds
may not be used for any purpose other than for the salary increase and
necessary employer contributions provided by this subsection.

(b) Noncertified
Employees. - The Director of the Budget may transfer from the Reserve for
Salary Increases created in this act for fiscal year 1993-94 and fiscal year
1994-95 funds necessary to provide a salary increase of two percent (2%),
including funds for the employer's retirement and social security
contributions, commencing July 1, 1993, for all noncertified public school
employees, except school bus drivers, whose salaries are supported from the
State's General Fund. These funds may not be used for any purpose other
than for the salary increases and necessary employer contributions provided by
this subsection.

(c) The fiscal year
1992-93 pay rates adopted by local boards of education for school bus drivers
shall be increased by at least two percent (2%) on and after July 1, 1993, to
the extent that such rates of pay are supported by the allocation of State
funds from the State Board of Education. Local boards of education shall
increase the rates of pay for all school bus drivers who were employed during
fiscal year 1992-93 and who continue their employment for fiscal year 1993-94
and fiscal year 1994-95 by at least two percent (2%) on and after July 1,
1993. The Director of the Budget may transfer from the salary increase
reserve fund created in this act for fiscal year 1993-94 and fiscal year
1994-95 funds necessary to provide the salary increases for school bus drivers
whose salaries are supported from the State's General Fund in accordance with
the provisions of this subsection.

Sec. 66. (a) Salaries for positions that are funded
partially from the General Fund or Highway Fund and partially from sources
other than the General Fund or Highway Fund shall be increased from the General
Fund or Highway Fund appropriation only to the extent of the proportionate part
of the salaries paid from the General Fund or Highway Fund.

(b) The granting of the
salary increases under this act does not affect the status of eligibility for
salary increments for which employees may be eligible unless otherwise required
by this act.

(c) The salary increases
provided in this Part are to be effective July 1, 1993, do not apply to persons
separated from State service due to resignation, dismissal, reduction in force,
death, or retirement, whose last workday is prior to July 1, 1993, or to
employees involved in final written disciplinary procedures. The employee
shall receive the increase on a current basis when the final written
disciplinary procedure is resolved.

Payroll checks issued to employees after July 1, 1993, which
represent payment for services provided prior to July 1, 1993, shall not be
eligible for salary increases provided for in this act. This subsection
shall apply to all employees, subject to or exempt from the State Personnel
Act, paid from State funds, including public schools, community colleges, and
The University of North Carolina.

(d) Notwithstanding the
provisions of Section 19.1 of Chapter 1137 of the 1979 Session Laws, as amended
by Chapter 1053 of the 1981 Session Laws, G.S. 115C-12(9)a., 115C-12(16),
126-7, or any other provision of law other than G.S. 20-187.3(a) and G.S.
7A-102(c), no employee or officer of the public school system shall receive an
automatic increment, and no State employee or officer shall receive a merit
increment during the 1993-94 and 1994-95 fiscal years, except as otherwise
permitted by this act.

(e) The Director of the
Budget shall transfer from the Reserve for Salary Increases created in this act
for fiscal year 1993-94 and fiscal year 1994-95 all funds necessary for the
salary increases provided by this act, including funds for the employer's
retirement and social security contributions.

(f) Nothing in this
act authorizes the transfer of funds from the General Fund to the Highway Fund
for salary increases.

Sec. 67. Notwithstanding any other provisions of
the current law, the Office of State Budget and Management may use funds in the
Reserve for Lowest Paid Employees for the purpose of continuing salary
increases awarded during fiscal year 1992-93 to the lowest paid State employees
pursuant to Section 37 of Chapter 1066 of the 1989 Session Laws.

Sec. 68. (a) The hiring rate of Salary Grade 50
under the State Personnel System is twelve thousand eight hundred seventy-seven
dollars ($12,877) per year. The salary of any employee at Salary Grade 50
which is less than that amount is raised to that amount.

(b) The hiring rate of
Salary Grade 51 under the State Personnel System is twelve thousand nine
hundred seventy-seven dollars ($12,977) per year. The salary of any
employee at Salary Grade 51 which is less than that amount is raised to that
amount.

(c) The hiring rate of
Salary Grade 52 under the State Personnel System is thirteen thousand
seventy-nine dollars ($13,079) per year. The salary of any employee at
Salary Grade 52 which is less than that amount is raised to that amount.

(d) Of the funds
appropriated to the Reserve for Salary Increases for fiscal year 1993-94 the
sum of one hundred thirty-five thousand five hundred dollars ($135,500) and for
fiscal year 1994-95 the sum of one hundred thirty-five thousand five hundred
dollars ($135,500) shall be used to implement this section.

(e) The Office of State
Personnel may use salary adjustment funds to adjust salaries in Grades 50
through 52 on the basis of years of experience for persons who on June 30,
1993, were above the hiring rate but will be at the hiring rate for their grade
as a result of this section.

(2) Who was, in the first
half of the 1993-94 fiscal year, a permanent officer or permanent employee
whose salary is set by or under this Part; and

(3) Who was such an
officer or employee for the entire first half of the fiscal year, or, if the
permanent position was for a contract which provides for a term of four months
or more during the period July 1, 1993 through December 31, 1993 held the
permanent position for the entire term of the contract

shall receive in December of 1993, a
compensation bonus of one percent (1%) of the annual salary for that position.

(b) Any person:

(1) Who is not eligible
for the compensation bonus provided by subsection (a) of this section;

(2) Whose salary is set by
or under this Part;

(3) Who was, in the second
half of the 1993-94 fiscal year, a permanent officer or permanent employee
whose salary is set by or under this Part; and

(4) Who was such an
officer or employee for the entire second half of the fiscal year, or, if the
permanent position was for a contract which provides for a term of four months
or more during the period January 1, 1994 through June 30, 1994 held the
permanent position for the entire term of the contract

shall receive in June of 1994, a
compensation bonus of one percent (1%) of the annual salary for that position.

(c) Any person:

(1) Whose salary is set by
or under Section 132 of this act;

(2) Who was, in the first
half of the 1993-94 fiscal year, a principal or assistant principal whose
salary is set by or under Section 132 of this act;

(3) Who was such an
principal or assistant principal for the entire first half of the fiscal year,
or, if the position was for a contract which provides for a term of four months
or more during the period July 1, 1993 through December 31, 1993 held the
position for the entire term of the contract; and

(4) Whose salary was
increased by Section 132 of this act by less than two percent (2%)

shall receive in December of 1993, a
compensation bonus of the difference between two percent (2%) and the
percentage by which the salary was increased by Section 132 of this act but not
to exceed one percent (1%) of the annual salary.

(d) Any person:

(1) Who is not eligible
for the compensation bonus provided by subsection (c) of this section;

(2) Whose salary is set by
or under Section 132 of this act;

(3) Who was, in the second
half of the 1993-94 fiscal year, a principal or assistant principal whose
salary is set by or under this Part;

(4) Who was such a
principal or assistant principal for the entire second half of the fiscal year,
or, if the position was for a contract which provides for a term of five months
or more during the period January 1, 1994, through June 30, 1994, held the
position for the entire term of the contract; and

(5) Whose salary was
increased by Section 132 of this act by less than two percent (2%)

shall receive in June of 1994, a
compensation bonus of the difference between two percent (2%) and the
percentage by which the salary was increased by Section 132 of this act but not
to exceed one percent (1%) of the annual salary.

(e) The annual salary on
which the percentage bonus is based is the annual salary in effect during the
pay period in which the bonus is paid.

(f) The provisions
of this section do not apply to persons whose salaries are determined in
accordance with G.S. 7A-102 or G.S. 20-187.3(a), except for those employees who
would not receive a salary increment for the 1993-94 fiscal year under G.S.
7A-102 or G.S. 20-187.3(a) because they are at the top of their salary range,
and do not apply to persons whose salaries are set by G.S. 120-3.

(g) The Director of the
Budget shall transfer from the Reserve for Compensation Bonus provided by this
act sufficient funds to implement this section.

Sec. 70. (a) Required employer salary-related
contributions for employees whose salaries are paid from department, office,
institution, or agency receipts shall be paid from the same source as the
source of the employees' salary. If an employee's salary is paid in part
from the General Fund or Highway Fund and in part from department, office,
institution, or agency receipts, required employer salary-related contributions
may be paid from the General Fund or Highway Fund only to the extent of the
proportionate part paid from the General Fund or Highway Fund in support of the
salary of the employee, and the remainder of the employer's requirements shall
be paid from the source that supplies the remainder of the employee's
salary. The requirements of this section as to source of payment are also
applicable to payments on behalf of the employee for hospital-medical benefits,
longevity pay, unemployment compensation, accumulated leave, workers'
compensation, severance pay, separation allowances, and applicable disability
income and disability salary continuation benefits.

(b) Effective July 1,
1993, the State's employer contribution rates budgeted for retirement and
related benefits as a percentage of covered salaries for the 1993-94 and
1994-95 fiscal years are (i) ten and ninety-six hundredths percent (10.96%) -
Teachers and State Employees; (ii) fifteen and ninety-six hundredths percent
(15.96%) - State Law Enforcement Officers; (iii) eight and ninety-two hundredths
percent (8.92%) - University Employees' Optional Retirement Program; (iv)
twenty-four and eighty-three hundredths percent (24.83%) - Consolidated
Judicial Retirement System; and (v) thirty-two and thirty hundredths percent
(32.30%) - Legislative Retirement System. Each of the foregoing
contribution rates includes two percent (2%) for hospital and medical
benefits. The rate for State Law Enforcement Officers includes five
percent (5%) for the Supplemental Retirement Income Plan. The rates for
Teachers and State Employees, State Law Enforcement Officers, and for the
University Employees' Optional Retirement Program includes forty-two hundredths
percent (0.42%) for the Disability Income Plan.

(c) The maximum annual
employer contributions, payable monthly, by the State for each covered employee
or retiree for the 1993-94 fiscal year and the 1994-95 fiscal year to the
Teachers' and State Employees' Comprehensive Major Medical Plan are: (i)
Medicare-eligible employees and retirees - one thousand three hundred
twenty-one dollars ($1,321); and (ii) Non-Medicare-eligible employees and
retirees - one thousand seven hundred thirty-six dollars ($1,736).

ALLOW LEGISLATORS SERVING IN
JANUARY 1985 TO PURCHASE CREDITABLE SERVICE IN THE LEGISLATIVE RETIREMENT
SYSTEM

Sec. 71. G.S. 120-4.12 is amended by adding a new
subsection to read:

"(c1)Any member of the
Retirement System who was a member of the General Assembly as of January 1985
may purchase prior service credit for the month of January 1985 based upon
seven percent (7%) of the compensation received for that period."

ALLOW LOCAL BOARDS OF EDUCATION TO
ESTABLISH SICK LEAVE BANKS FOR PUBLIC SCHOOL EMPLOYEES

Sec. 72. (a) Effective January 1, 1994, G.S. 115C-336 is
amended by designating the existing language as subsection (a) and by adding a
new subsection to read:

"(b)The State
Board of Education shall adopt rules and regulations for the establishment of
voluntary sick leave banks by local boards of education, from which an
employee, upon exhaustion of accumulated sick leave and annual leave, when
allowable, may withdraw sick leave days in the event of emergency or
catastrophic illness. These rules may include, but not be limited to, (i)
requirements of minimum service and minimum balance of sick leave before an
employee may join the sick leave bank, (ii) enrollment periods for present
employees and new hires, (iii) time limits for rejoining the sick leave bank,
(iv) limitation on number of days which can be withdrawn by any employee, (v)
waiting period before being eligible to withdraw sick leave, (vi) exclusion of
illness or injury covered by Workers' Compensation Benefits, (vii)
certification by physician attesting to member's illness or accident, (viii)
administration of each sick leave bank by a Sick Leave Bank Committee to be
made up of representatives of different classifications of employees, and (ix)
other requirements to prevent any adverse selection by employees. The
rules concerning the establishment of sick leave banks shall include provisions
for notifying employees who donate sick leave to and employees who withdraw
sick leave from the sick leave bank, of the State retirement credit
consequences as to the donated sick leave."

(b) The Department of
Public Instruction in fiscal years 1993-94 and 1994-95 may reimburse, from
funds appropriated by this act, local school administrative units for items
relating to sick leave used by employees under this section.

(c) Each local school
administrative unit creating a sick leave bank under the rules and regulations
adopted by the State Board of Education shall report to the Department of
Public Instruction, on a schedule prescribed by that Department, the number of
employees participating, itemized by job classification, the number of sick
leave days withdrawn, and the cost of the leave.

ALLOW PUBLIC SCHOOL EMPLOYEES AND
STATE EMPLOYEES TO CONVERT EXCESS ANNUAL LEAVE DAYS TO SICK LEAVE

Sec. 73. (a) G.S. 115C-272(b)(2) reads as rewritten:

"(2) Notwithstanding any
provisions of this section to the contrary no person shall be entitled to pay
for any vacation day not earned by that person. Vacation days shall not be used
for extending the term of employment of individuals and shall not be cumulative
from one fiscal year to another fiscal year: Provided, that superintendents may
accumulate annual vacation leave days as follows: annual leave may be
accumulated without any applicable maximum until June 30 of each year. On June
30 of each year, any superintendent with more than 30 days of accumulated leave
shall have the excess accumulation cancelled converted to sick leave so
that only 30 days are carried forward to July 1 of the same year. All vacation
leave taken by the superintendent will be upon the authorization of his
immediate supervisor and under policies established by the local board of
education. An employee shall be paid in a lump sum for accumulated annual leave
not to exceed a maximum of 240 hours when separated from service due to
resignation, dismissal, reduction in force, death, or service retirement. If
the last day of terminal leave falls on the last workday in the month, payment
shall be made for the remaining nonworkdays in that month. Employees retiring
on disability retirement may exhaust annual leave rather than be paid in a lump
sum. The provisions of this subdivision shall be accomplished without
additional State and local funds being appropriated for this purpose. The State
Board of Education shall adopt rules and regulations for the administration of
this subdivision."

(b) G.S. 115C-285(a)(2)
reads as rewritten:

"(2) Supervisors and
classified principals paid on an hourly or other basis whether paid from State
or from local funds may accumulate annual vacation leave days as follows:
annual leave may be accumulated without any applicable maximum until June 30 of
each year. On June 30 of each year, any supervisor or principals with
more than 30 days of accumulated leave shall have the excess accumulation cancelled
converted to sick leave so that only 30 days are carried forward to
July 1 of the same year. All vacation leave taken by the employee will be
upon the authorization of his immediate supervisor and under policies
established by the local board of education. An employee shall be paid in
a lump sum for accumulated annual leave not to exceed a maximum of 240 hours
when separated from service due to resignation, dismissal, reduction in force,
death, or service retirement. If the last day of terminal leave falls on
the last workday in the month, payment shall be made for the remaining
nonworkdays in that month. Employees retiring on disability retirement
may exhaust annual leave rather than be paid in a lump sum. The
provisions of this subdivision shall be accomplished without additional State
and local funds being appropriated for this purpose. The State Board of
Education shall adopt rules and regulations for the administration of this
subdivision."

(c) G.S. 115C-302(a)(3)
reads as rewritten:

"(3) Notwithstanding any
provisions of this section to the contrary no person shall be entitled to pay
for any vacation day not earned by that person. The first 10 days of
annual vacation leave earned by a teacher during any fiscal year period shall
be scheduled to be used in the school calendar adopted by the respective local
boards of education. Vacation days shall not be used for extending the
term of employment of individuals. Teachers may accumulate annual
vacation leave days as follows: annual leave may be accumulated without any
applicable maximum until June 30 of each year. On June 30 of each year,
any teachers with more than 30 days of accumulated leave shall have the excess
accumulation cancelled converted to sick leave so that only 30
days are carried forward to July 1 of the same year. All vacation leave
taken by the teacher will be upon the authorization of his immediate supervisor
and under policies established by the local board of education. An
employee shall be paid in a lump sum for accumulated annual leave not to exceed
a maximum of 240 hours when separated from service due to resignation,
dismissal, reduction in force, death, or service retirement. If the last
day of terminal leave falls on the last workday in the month, payment shall be
made for the remaining nonworkdays in that month. Employees retiring on
disability retirement may exhaust annual leave rather than be paid in a lump
sum. The provisions of this subdivision shall be accomplished without
additional State and local funds being appropriated for this purpose. The
State Board of Education shall adopt rules and regulations for the
administration of this subdivision."

(d) G.S. 115C-316(a)(3)
reads as rewritten:

"(3) Notwithstanding any
provisions of this section to the contrary no person shall be entitled to pay
for any vacation day not earned by that person. The first 10 days of
annual leave earned by a 10- or 11-month employee during any fiscal year period
shall be scheduled to be used in the school calendar adopted by the respective
local boards of education. Vacation days shall not be used for extending
the term of employment of individuals. Ten- or 11-month employees may
accumulate annual vacation leave days as follows: annual leave may be
accumulated without any applicable maximum until June 30 of each year. On
June 30 of each year, any of these employees with more than 30 days of
accumulated leave shall have the excess accumulation cancelled converted
to sick leave so that only 30 days are carried forward to July 1 of the
same year. All vacation leave taken by these employees will be upon the
authorization of their immediate supervisor and under policies established by
the local board of education. An employee shall be paid in a lump sum for
accumulated annual leave not to exceed a maximum of 240 hours when separated
from service due to resignation, dismissal, reduction in force, death or
service retirement. If the last day of terminal leave falls on the last
workday in the month, payment shall be made for the remaining nonworkdays in
that month. Employees retiring on disability retirement may exhaust
annual leave rather than be paid in a lump sum. The provisions of this
subdivision shall be accomplished without additional State and local funds
being appropriated for this purpose. The State Board of Education shall
adopt rules and regulations for the administration of this subdivision."

(e) G.S. 115C-316(a)(4)
reads as rewritten:

"(4) Twelve-month school
employees other than superintendents, supervisors and classified principals
paid on an hourly or other basis whether paid from State or from local funds
may accumulate annual vacation leave days as follows: annual leave may be
accumulated without any applicable maximum until June 30 of each year. On
June 30 of each year, any employee with more than 30 days of accumulated leave
shall have the excess accumulation cancelled converted to sick leave so
that only 30 days are carried forward to July 1 of the same year. All
vacation leave taken by the employee will be upon the authorization of his
immediate supervisor and under policies established by the local board of
education. An employee shall be paid in a lump sum for accumulated annual
leave not to exceed a maximum of 240 hours when separated from service due to
resignation, dismissal, reduction in force, death, or service retirement.
If the last day of terminal leave falls on the last workday in the month,
payment shall be made for the remaining nonworkdays in that month. Employees
retiring on disability retirement may exhaust annual leave rather than be paid
in a lump sum. The provisions of this subdivision shall be accomplished
without additional State and local funds being appropriated for this
purpose. The State Board of Education shall adopt rules and regulations
for the administration of this subdivision."

(f) G.S. 126-8
reads as rewritten:

"§ 126-8.
Minimum leave granted State employees.

The amount of vacation leave granted to each full-time State
employee subject to the provisions of this Chapter shall be determined in
accordance with a graduated scale established by the State Personnel Commission
which shall allow the equivalent rate of not less than two weeks' vacation per
calendar year, prorated monthly, cumulative to at least 30 days. Any State
employee who has vacation leave in excess of the allowed accumulation shall
have that leave converted to sick leave. Sick leave allowed as needed
to such State employees shall be at a rate not less than 10 days for each
calendar year, cumulative from year to year. Notwithstanding any other
provisions of this section, no full-time State employee subject to the
provisions of Chapter 126, as the same appears in the Cumulative Supplement to
Volume 3B of the General Statutes, on May 23, 1973, shall be allowed less than
the equivalent of three weeks' vacation per calendar year, cumulative to at
least 30 days."

PROVIDE AN INCREASE TO RETIREES OF
THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE TEACHERS' AND STATE
EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND
THE LEGISLATIVE RETIREMENT SYSTEM, AND TO INCREASE THE RETIREMENT FORMULA WITH
ADJUSTING INCREASE TO RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT
SYSTEM

Sec. 74. (a) G.S. 120-4.22A is amended by adding a
new subsection to read:

"(h)In
accordance with subsection (a) of this section, from and after July 1, 1993,
the retirement allowance to or on account of beneficiaries whose retirement
commenced on or before January 1, 1993, shall be increased by one and
six-tenths percent (1.6%) of the allowance payable on January 1, 1993.
Furthermore, from and after July 1, 1993, the retirement allowance to or on
account of beneficiaries whose retirement commenced after January 1, 1993, but
before June 30, 1993, shall be increased by a prorated amount of one and
six-tenths percent (1.6%) of the allowance payable as determined by the Board
of Trustees based upon the number of months that a retirement allowance was
paid between January 1, 1993, and June 30, 1993."

(b) G.S. 128-27 is
amended by adding a new subsection to read:

"(ll)From and after
July 1, 1993, the retirement allowance to or on account of beneficiaries whose
retirement commenced on or before July 1, 1992, shall be increased by one and
six-tenths percent (1.6%) of the allowance payable on July 1, 1992, in
accordance with G.S. 128-27(k). Furthermore, from and after July 1, 1993,
the retirement allowance to or on account of beneficiaries whose retirement
commenced after July 1, 1992, but before June 30, 1993, shall be increased by a
prorated amount of one and six-tenths percent (1.6%) of the allowance payable
as determined by the Board of Trustees based upon the number of months that a
retirement allowance was paid between July 1, 1992, and June 30, 1993."

(c) G.S. 135-5(b13) reads
as rewritten:

"(b13) Service Retirement Allowance of Members Retiring
on or after July 1, 1992.1992, but before July 1, 1993. - Upon
retirement from service in accordance with subsection (a) above, on or after
July 1, 1992, but before July 1, 1993, a member shall receive the
following service retirement allowance:

(1) A member who is a law
enforcement officer or an eligible former law enforcement officer shall receive
a service retirement allowance computed as follows:

a. If the
member's service retirement date occurs on or after his 55th birthday, and
completion of five years of creditable service as a law enforcement officer, or
after the completion of 30 years of creditable service, the allowance shall be
equal to one and seventy hundredths percent (1.70%) of his average final
compensation, multiplied by the number of years of his creditable service.

b. This
allowance shall also be governed by the provisions of G.S. 135-5(b9)(1)b.

(2) A member who is not a
law enforcement officer or an eligible former law enforcement officer shall
receive a service retirement allowance computed as follows:

a. If the
member's service retirement date occurs on or after his 65th birthday upon the
completion of five years of creditable service or after the completion of 30
years of creditable service or on or after his 60th birthday upon the
completion of 25 years of creditable service, the allowance shall be equal to
one and seventy hundredths percent (1.70%) of his average final compensation,
multiplied by the number of years of creditable service.

b. This
allowance shall also be governed by the provisions of G.S. 135-5(b9)(2)b. c.
and d."

(d) G.S. 135-5 is amended
by adding a new subsection to read:

"(b14)Service Retirement Allowance of Members
Retiring on or after July 1, 1993. - Upon retirement from service in accordance
with subsection (a) above, on or after July 1, 1993, a member shall receive the
following service retirement allowance:

(1)A member who
is a law enforcement officer or an eligible former law enforcement officer
shall receive a service retirement allowance computed as follows:

a.If
the member's service retirement date occurs on or after his 55th birthday, and
completion of five years of creditable service as a law enforcement officer, or
after the completion of 30 years of creditable service, the allowance shall be
equal to one and seventy-one hundredths percent (1.71%) of his average final
compensation, multiplied by the number of years of his creditable service.

b.If
the member's service retirement date occurs after his 50th and before his 55th
birthday with 15 or more years of creditable service as a law enforcement
officer and prior to the completion of 30 years of creditable service, the
allowance shall be computed as in G.S. 135-5(b14)(1)a., but shall be reduced by
one-third of one percent (1/3 of 1%) thereof for each month by which the
retirement date precedes the first day of the month coincident with or next
following his 55th birthday.

(2)A member who
is not a law enforcement officer or an eligible former law enforcement officer
shall receive a service retirement allowance computed as follows:

a.If
the member's service retirement date occurs on or after his 65th birthday upon
the completion of five years of creditable service or after the completion of
30 years of creditable service or on or after his 60th birthday upon the
completion of 25 years of creditable service, the allowance shall be equal to
one and seventy-one hundredths percent (1.71%) of his average final
compensation, multiplied by the number of years of creditable service.

b.If
the member's service retirement date occurs after his 60th birthday and before
his 65th birthday and prior to the completion of 25 years or more of creditable
service, the retirement allowance shall be computed as in G.S. 135-5(b14)(2)a.
but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each
month by which his retirement date precedes the first day of the month
coincident with or next following his 65th birthday.

c.If
the member's service retirement date occurs before his 60th birthday and prior
to the completion of 30 or more years of creditable service, the service
retirement allowance shall be the actuarial equivalent of the allowance payable
at the age of 60 years as computed in G.S. 135(b14)(2)b.

d.Notwithstanding
the foregoing provisions, any member whose creditable service commenced prior
to July 1, 1963, shall receive not less than the benefit provided by G.S
135-5(b)."

(e) G.S 135-5 is amended
by adding two new subsections to read:

"(vv)Increase in Allowance
as to Persons on Retirement Rolls as of June 1, 1993. - From and after July 1,
1993, the retirement allowance to or on account of beneficiaries on the
retirement rolls as of June 1, 1993, shall be increased by six-tenths of one
percent (.6%) of the allowance payable on June 1, 1993. This allowance
shall be calculated on the allowance payable and in effect on June 30, 1993, so
as not to be compounded on any other increase granted by act of the 1993
General Assembly.

(ww)From and after July 1, 1993,
the retirement allowance to or on account of beneficiaries whose retirement
commenced on or before July 1, 1992, shall be increased by one and six-tenths
percent (1.6%) of the allowance payable on July 1, 1992, in accordance with
G.S. 135-5(o). Furthermore, from and after July 1, 1993, the retirement
allowance to or on account of beneficiaries whose retirement commenced after
July 1, 1992, but before June 30, 1993, shall be increased by a prorated amount
of one and six-tenths percent (1.6%) of the allowance payable as determined by
the Board of Trustees based upon the number of months that a retirement allowance
was paid between July 1, 1992, and June 30, 1993."

(f) G.S. 135-65 is
amended by adding a new subsection to read:

"(n)From and
after July 1, 1993, the retirement allowance to or on account of beneficiaries
whose retirement commenced on or before July 1, 1992, shall be increased by one
and six-tenths percent (1.6%) of the allowance payable on July 1, 1992.
Furthermore, from and after July 1, 1993, the retirement allowance to or on
account of beneficiaries whose retirement commenced after July 1, 1992, but
before June 30, 1993, shall be increased by a prorated amount of one and
six-tenths percent (1.6%) of the allowance payable as determined by the Board
of Trustees based upon the number of months that a retirement allowance was
paid between July 1, 1992, and June 30, 1993."

(g) In order to fund the
provisions of this Part, the Board of Trustees of the Teachers' and State
Employees' Retirement System, the Consolidated Judicial Retirement System, and
the Legislative Retirement System, with the advice of the consulting actuary,
shall apply the unencumbered actuarial gains in the Systems by allocating the
percentage of payroll contribution rates for employers between the normal and
accrued liability contributions to the Retirement System.

PROVIDE THAT RETIRED MEMBERS IN
RECEIPT OF A RETIREMENT ALLOWANCE FROM THE STATE-ADMINISTERED RETIREMENT
SYSTEMS SHALL RECEIVE RETIREMENT BENEFITS EQUAL TO AN AMOUNT NOT LESS THAN THE
ACCUMULATED CONTRIBUTIONS OF THE RETIREE AT RETIREMENT

Sec. 74.1. (a) G.S. 120-4.26 reads as rewritten:

"§
120-4.26. Benefit payment options.

Any member may elect to receive his benefits in a retirement allowance
payable throughout life, or he may elect to receive the actuarial equivalent of
the retirement allowance in a reduced allowance payable throughout life under
the provisions of one of the options set forth below. No election may be
made after the first payment becomes due, or the first retirement check cashed,
nor may an election be revoked or a nomination changed. The election of
Option 2 or Option 3 or the nomination of the person thereunder shall be
revoked if the person nominated dies prior to the date the first payment
becomes normally due or until the first retirement check has been cashed.
The election may be revoked by the member prior to the date the first payment
becomes normally due or until his first retirement check has been cashed.
Provided, however, any member having elected Options 2 or 3 and nominated his
or her spouse to receive a retirement allowance upon the member's death may,
after divorce from his or her spouse, revoke the nomination and elect a new
option, effective on the first day of the month in which the new option is
elected, providing for a retirement allowance computed to be the actuarial
equivalent to the retirement allowance in effect immediately prior to the
effective date of the new option.

Option 1. - For Members Retiring Prior to July 1, 1993. -
If a member dies within 10 years from his retirement date, an amount equal to
his accumulated contributions at retirement, less one-one hundred twentieth
(1/120) for each month for which he has received a retirement allowance
payment, shall be paid to his legal representative or to the person he
nominates by written designation acknowledged and filed with the Board of
Trustees;

Option 2. - Upon his death, his reduced retirement allowance
shall be continued throughout the life of and paid to the person he nominates
by written designation duly acknowledged and filed with the Board of Trustees
at the time of his retirement. If the person selected is other than his
spouse, the reduced retirement allowance payable to the member shall not be
less than one half of the retirement allowance without optional modification
which would otherwise be payable to him; or

Option 3. - Upon his death, one half of his reduced
retirement allowance shall be continued throughout the life of and paid to the
person he nominates by written designation duly acknowledged and filed with the
Board of Trustees at the time of his retirement."

(b) Article 1A of Chapter
120 of the General Statutes is amended by adding a new section to read:

"§ 120-4.26A.
Benefits on death after retirement.

In the event of the death of a retired member while in
receipt of a retirement allowance under the provisions of this Article, there
shall be paid to such person or persons as the retiree shall have nominated by
written designation duly acknowledged and filed with the Board of Trustees, if
such person or persons are living at the time of the retiree's death, otherwise
to the retiree's legal representatives, a death benefit equal to the excess, if
any, of the accumulated contributions of the retiree at the date of retirement
over the total of the retirement allowances paid prior to the death of the
retiree.

In the event that a retirement allowance becomes payable
to the designated survivor of a retired member under the provisions of G.S.
120-4.26 and such retirement allowance to the survivor shall terminate upon the
death of the survivor before the total of the retirement allowances paid to the
retiree and the designated survivor combined equals the amount of the accumulated
contributions of the retiree at the date of retirement, the excess, if any, of
such accumulated contributions over the total of the retirement allowances paid
to the retiree and the survivor combined shall be paid in a lump sum to such
person or persons as the retiree shall have nominated by written designation
duly acknowledged and filed with the Board of Trustees, if such person or
persons are living at the time such payment falls due, otherwise to the
retiree's legal representative."

(c) G.S. 128-27(g) reads
as rewritten:

"(g) Election of Optional
Allowance. - With the provision that until the first payment on account of any
benefit becomes normally due, or his first retirement check has been cashed,
any member may elect to receive his benefits in a retirement allowance payable
throughout life, or he may elect to receive the actuarial equivalent of such
retirement allowance in a reduced allowance payable throughout life under the
provisions of one of the Options set forth below. The election of Option
two or Option three or nomination of the person thereunder shall be revoked if
such person nominated dies prior to the date the first payment becomes normally
due or the first retirement check has been cashed. Such election may be
revoked by the member prior to the date the first payment becomes normally due
or his first retirement check has been cashed. Provided, however, any
member having elected Options two, three, five, or six and nominated his
or her spouse to receive a retirement allowance upon the member's death may,
after divorce from his or her spouse, revoke the nomination and elect a new
option, effective on the first day of the month in which the new option is
elected, providing for a retirement allowance computed to be the actuarial
equivalent of the retirement allowance in effect immediately prior to the
effective date of the new option.

Option one. (a) In the Case of a Member Who Retires prior to
July 1, 1965. - If he dies before he has received in annuity payments the
present value of his annuity as it was at the time of his retirement, the
balance shall be paid to such person as he shall nominate by written
designation duly acknowledged and filed with the Board of Trustees or, if none,
to his legal representative.

(b) In the Case of a
Member Who Retires on or after July 1, 1965.1965, but prior to July
1, 1993. - If he dies within 10 years from his retirement date, an amount
equal to his accumulated contributions at retirement, less one
one-hundred-twentieth thereof for each month for which he has received a
retirement allowance payment, shall be paid to such person as he shall nominate
by written designation duly acknowledged and filed with the Board of Trustees
or, if none, to his legal representative; or

Option two. Upon his death his reduced retirement allowance
shall be continued throughout the life of and paid to such person as he shall
nominate by written designation duly acknowledged and filed with the Board of
Trustees at the time of his retirement, provided that if the person selected is
other than his spouse the reduced retirement allowance payable to the member
shall not be less than one half of the retirement allowance without optional
modification which would otherwise be payable to him; or

Option three. Upon his death, one half of his reduced
retirement allowance shall be continued throughout the life of, and paid to
such person as he shall nominate by written designation duly acknowledged and
filed with the Board of Trustees at the time of his retirement; or

Option four. Adjustment of Retirement Allowance for Social
Security Benefits. - Until the first payment on account of any benefit becomes
normally due, any member may elect to convert his benefit otherwise payable on
his account after retirement into a retirement allowance of equivalent
actuarial value of such amount that with his benefit under Table II of the
Federal Social Security Act, he will receive, so far as possible, approximately
the same amount per year before and after the earliest age at which he becomes
eligible, upon application therefor, to receive a social security
benefit. A member who makes an election in accordance with this option
shall be deemed to have made a further election of Option one above.

Option five. For Members Retiring prior to July 1,
1993. The member may elect: elect to (1) To receive
a reduced retirement allowance under the conditions of Option two or Option
three, as provided for above, with the modification that if both he and the
person nominated die within 10 years from his retirement date, an amount equal
to his accumulated contributions at retirement, less 1/120th thereof for each
month for which a retirement allowance has been paid, shall be paid to his
legal representatives or to such person as he shall nominate by written
designation duly acknowledged and filed with the Board of Trustees; Trustees.
or

(2)To receive a
reduced retirement allowance during his life with provisions for some other
benefit to be paid after his death in accordance with a plan submitted to and
approved by the Board of Trustees.

Option six. A member may elect either Option two or Option
three with the added provision that in the event the designated beneficiary
predeceases the member, the retirement allowance payable to the member after
the designated beneficiary's death shall be equal to the retirement allowance
which would have been payable had the member not elected the option."

(d) G.S. 128-27 is
amended by adding a new subsection to read:

"(g1)In the event of the
death of a retired member while in receipt of a retirement allowance under the
provisions of this Article, there shall be paid to such person or persons as
the retiree shall have nominated by written designation duly acknowledged and
filed with the Board of Trustees, if such person or persons are living at the
time of the retiree's death, otherwise to the retiree's legal representatives,
a death benefit equal to the excess, if any, of the accumulated contributions
of the retiree at the date of retirement over the total of the retirement
allowances paid prior to the death of the retiree.

In the event that a retirement allowance becomes payable
to the designated survivor of a retired member under the provisions above and
such retirement allowance to the survivor shall terminate upon the death of the
survivor before the total of the retirement allowances paid to the retiree and
the designated survivor combined equals the amount of the accumulated
contributions of the retiree at the date of retirement, the excess, if any, of
such accumulated contributions over the total of the retirement allowances paid
to the retiree and the survivor combined shall be paid in a lump sum to such
person or persons as the retiree shall have nominated by written designation
duly acknowledged and filed with the Board of Trustees, if such person or
persons are living at the time such payment falls due, otherwise to the
retiree's legal representative."

(e) G.S. 135-5(g) reads
as rewritten:

"(g) Election of Optional Allowance.
- With the provision that until the first payment on account of any benefit
becomes normally due, or his first retirement check has been cashed, any member
may elect to receive his benefits in a retirement allowance payable throughout
life, or he may elect to receive the actuarial equivalent of such retirement
allowance in a reduced allowance payable throughout life under the provisions
of one of the options set forth below. The election of Option 2 or Option
3 or nomination of the person thereunder shall be revoked if such person
nominated dies prior to the date the first payment becomes normally due or
until the first retirement check has been cashed. Such election may be
revoked by the member prior to the date the first payment becomes normally due
or until his first retirement check has been cashed. Provided, however,
any member having elected Options 2, 3, 5, or 6 and nominated his or her
spouse to receive a retirement allowance upon the member's death may, after
divorce from his or her spouse, revoke the nomination and elect a new option,
effective on the first day of the month in which the new option is elected,
providing for a retirement allowance computed to be the actuarial equivalent of
the retirement allowance in effect immediately prior to the effective date of
the new option.

Option
1.
(a) In the Case of a Member Who Retires
prior to July 1, 1963. - If he dies before he has received in annuity payments
the present value of his annuity as it was at the time of his retirement, the
balance shall be paid to his legal representatives or to such person as he
shall nominate by written designation duly acknowledged and filed with the
Board of Trustees.

(b) In the Case of a
Member Who Retires on or after July 1, 1963.1963, but prior to July
1, 1993. - If he dies within 10 years from his retirement date, an amount
equal to his accumulated contributions at retirement, less 1/120 thereof for
each month for which he has received a retirement allowance payment, shall be
paid to his legal representatives or to such person as he shall nominate by
written designation duly acknowledged and filed with the Board of Trustees; or

Option
2. Upon his death his reduced
retirement allowance shall be continued throughout the life of and paid to such
person as he shall nominate by written designation duly acknowledged and filed
with the Board of Trustees at the time of his retirement, provided that if the
person selected is other than his spouse the reduced retirement allowance
payable to the member shall not be less than one half of the retirement
allowance without optional modification which would otherwise be payable to
him; or

Option
3. Upon his death, one half of his
reduced retirement allowance shall be continued throughout the life of, and
paid to such person as he shall nominate by written designation duly
acknowledged and filed with the Board of Trustees at the time of his
retirement; or

Option
4. Adjustment of Retirement Allowance
for Social Security Benefits. - Until the first payment on account of any
benefit becomes normally due, any member may elect to convert his benefit
otherwise payable on his account after retirement into a retirement allowance
of equivalent actuarial value of such amount that with his benefit under Title
II of the Federal Social Security Act, he will receive, so far as possible,
approximately the same amount per year before and after the earliest age at
which he becomes eligible, upon application therefor, to receive a social
security benefit.A member who makes an election in accordance with this
option shall be deemed to have made a further election of Option 1 above.

Option
5. For Members Retiring Prior to
July 1, 1993. - The member may elect: elect to (1) To receive
a reduced retirement allowance under the conditions of Option 2 or Option 3, as
provided for above, with the modification that if both he and the person
nominated die within 10 years from his retirement date, an amount equal to his
accumulated contributions at retirement, less 1/120 thereof for each month for
which a retirement allowance has been paid, shall be paid to his legal
representatives or to such person as he shall nominate by written designation
duly acknowledged and filed with the Board of Trustees; Trustees.or

(2)To receive a
reduced retirement allowance during his life with provision for some other
benefit to be paid after his death in accordance with a plan submitted to and
approved by the Board of Trustees.

Option
6. A member may elect either Option 2
or Option 3 with the added provision that in the event the designated
beneficiary predeceases the member, the retirement allowance payable to the
member after the designated beneficiary's death shall be equal to the
retirement allowance which would have been payable had the member not elected
the option."

(f) G.S. 135-5 is
amended by adding a new subsection to read:

"(g1)In the event of the
death of a retired member while in receipt of a retirement allowance under the
provisions of this Article, there shall be paid to such person or persons as
the retiree shall have nominated by written designation duly acknowledged and
filed with the Board of Trustees, if such person or persons are living at the
time of the retiree's death, otherwise to the retiree's legal representatives,
a death benefit equal to the excess, if any, of the accumulated contributions
of the retiree at the date of retirement over the total of the retirement
allowances paid prior to the death of the retiree.

In the event that a retirement allowance becomes payable
to the designated survivor of a retired member under the provisions above and
such retirement allowance to the survivor shall terminate upon the death of the
survivor before the total of the retirement allowances paid to the retiree and
the designated survivor combined equals the amount of the accumulated
contributions of the retiree at the date of retirement, the excess, if any, of
such accumulated contributions over the total of the retirement allowances paid
to the retiree and the survivor combined shall be paid in a lump sum to such
person or persons as the retiree shall have nominated by written designation
duly acknowledged and filed with the Board of Trustees, if such person or
persons are living at the time such payment falls due, otherwise to the
retiree's legal representative."

"Sec. 12. Section 1 of this act is effective
upon ratification. The remainder of this act This act shall
become effective August 1, 1988."

(b) Funds to support any
costs incurred as a result of the date change in subsection (a) of this section
shall be made available from funds within the Teachers' and State Employees'
Death Benefit Plan.

PART 15. COLLEGES AND
UNIVERSITIES

Requested by: Senator Ward, Representatives Black, Rogers

UNC ACADEMIC PROVISIONS

Sec. 75. It is the intent of the General Assembly
not to reduce the budgets of The University of North Carolina for the 1993-95
fiscal biennium in response to the thirty percent (30%) of costs of personnel
exempt from the State Personnel Act who retired during the 1992-93 fiscal year
and were working in the areas of teaching, libraries, and academic leadership.

Requested by: Senator Ward, Representatives Black, Rogers

INVENTORY

Sec. 76. The Board of Governors of The University
of North Carolina shall direct the chancellors and appropriate management staff
at the constituent institutions and other affiliated operations to review their
management of expendable inventory and to establish the best management
practices for inventory control, in keeping with the recommendations of the
Government Performance Audit Committee. To the degree that savings can be
achieved from better inventory management, the Board shall report these savings
to the Joint Appropriations Committees of the General Assembly by April 15,
1994.

Requested by: Senator Ward, Representatives Black, Rogers

COMPUTER NETWORK MANAGEMENT

Sec. 77. The Board of Governors of The University
of North Carolina shall review its planned improvements in the LINCNET network
operated by The University of North Carolina, and, in conjunction with the
Office of the State Controller and the Microelectronics Center of North
Carolina, determine if the improvements and the ongoing operation of LINCNET
can be accomplished more efficiently by combining LINCNET with other networks
or by its integration into the proposed statewide broadband network. The
Board shall report its findings to the General Assembly and to the Information
Resources Management Commission by May 1, 1994.

Sec. 78. (a) Funds appropriated in this act to the
Board of Governors of The University of North Carolina for continuation of
financial assistance to the medical schools of Duke University and Wake Forest
University shall be disbursed on certifications of the respective schools of
medicine that show the number of North Carolina residents as first-year,
second-year, third-year, and fourth-year students in the medical school as of
November 1, 1993, and November 1, 1994. Disbursement to Wake Forest
University shall be made in the amount of eight thousand dollars ($8,000) for
each medical student who is a North Carolina resident, one thousand dollars
($1,000) of which shall be placed by the school in a fund to be used to provide
financial aid to needy North Carolina students who are enrolled in the medical
school. The maximum aid given to any student from this fund in a given
year may not exceed the amount of the difference in tuition and academic fees
charged by the school and those charged at the School of Medicine at the
University of North Carolina at Chapel Hill.

Disbursement to Duke University shall be made in the amount
of five thousand dollars ($5,000) for each medical student who is a North
Carolina resident, five hundred dollars ($500.00) of which shall be placed by
the school in a fund to be used to provide student financial aid to financially
needy North Carolina students who are enrolled in the medical school. No
individual student may be awarded assistance from this fund in excess of two
thousand dollars ($2,000) each year. In addition to this basic disbursement
for each year of the biennium, a disbursement of one thousand dollars ($1,000)
shall be made for each medical student who is a North Carolina resident in the
first-year, second-year, third-year, and fourth-year classes to the extent that
enrollment of each of those classes exceeds 30 North Carolina students.

The Board of Governors shall establish the criteria for
determining the eligibility for financial aid of needy North Carolina students
who are enrolled in the medical schools and shall review the grants or awards
to eligible students. The Board of Governors shall adopt rules for
determining which students are residents of North Carolina for the purposes of
these programs. The Board of Governors shall also make any regulations as
necessary to ensure that these funds are used directly for instruction in the
medical programs of the schools and not for religious or other nonpublic
purposes. In recognition of North Carolina's need for primary care
physicians, Bowman Gray School of Medicine and Duke University School of
Medicine shall each prepare a plan with the goal of encouraging North Carolina
residents to enter the primary care disciplines of general internal medicine,
general pediatrics, family medicine, obstetrics/gynecology, and combined medicine/pediatrics
and to strive to have at least fifty percent (50%) of North Carolina residents
graduating from each school entering these disciplines. These schools of
medicine shall present their plans to the Board of Governors of The University
of North Carolina by April 15, 1994. The Board of Governors shall report
to the Joint Legislative Education Oversight Committee by May 15, 1994, on the
status of these efforts to strengthen primary health care in North Carolina.

(b) The Board of Governors
of The University of North Carolina shall set goals for the Schools of Medicine
at the University of North Carolina at Chapel Hill and the School of Medicine
at East Carolina University for increasing the percentage of graduates who
enter residencies and careers in primary care. A minimum goal should be
at least fifty percent (50%) of graduates entering primary care
disciplines. Each school shall submit a plan with strategies to reach
these goals of increasing the number of graduates entering primary care
disciplines to the Board by April 15, 1994. The Board of Governors shall
report to the Joint Legislative Education Oversight Committee by May 15, 1994,
on the status of these efforts to strengthen primary health care in North
Carolina.

Primary care shall include the disciplines of family,
medicine, general pediatric medicine, general internal medicine, internal
medicine/pediatrics, and obstetrics/gynecology.

(c) The Board of
Governors of The University of North Carolina shall further initiate whatever
changes are necessary on admissions, advising, curriculum, and other policies
for State-operated medical schools to ensure that larger proportions of medical
students seek residencies in primary care disciplines. The Board shall
work with the Area Health Education Centers and other entities, adopting
whatever policies it considers necessary to ensure that residency programs have
sufficient medical residency positions for medical school graduates in these
primary care specialties.

(d) The progress of the
private and public medical schools towards increasing the number and proportion
of graduates entering primary care shall be monitored annually by the Board of
Governors of The University of North Carolina. Monitoring data shall
include (i) the entry of State-supported medical graduates into primary care
residencies, and (ii) the specialty practices by a physician as of a date five
years after graduation. The Board of Governors shall certify data on
graduates, their residencies, and subsequent careers by October 1 of each
calendar year, beginning in October of 1995, to the Fiscal Research Division of
the Legislative Services Office and to the Joint Legislative Education
Oversight Committee.

(e) The information
provided in subsection (d) of this section shall be made available to the
Appropriations Committees of the General Assembly for their use in future
funding decisions on medical education.

Requested by: Senator Ward, Representatives Black, Rogers

AID TO PRIVATE COLLEGES/LEGISLATIVE
TUITION GRANT LIMITATIONS

Sec. 79. (a) The amount of a tuition grant awarded
to a student enrolled in a degree program at a site away from the main campus
of the approved private institution, as defined in G.S. 116-22(1), shall be no more
than the result of the ratio of the cost per credit hour for off-campus
instruction at that site to the cost per credit hour for regular, full-time
on-campus instruction, multiplied by the maximum grant award, or the maximum
grant award allowable under this act, whichever is less.

(b) No Legislative
Tuition Grant funds shall be expended for a program at an off-campus site of a
private institution, as defined in G.S. 116-22(1), established after May 15,
1987, unless (i) the private institution offering the program has previously
notified and secured agreement from other private institutions operating degree
programs in the county in which the off-campus program is located or operating
in the counties adjacent to that county or (ii) the degree program is neither
available nor planned in the county with the off-campus site or in the counties
adjacent to that county.

An "off-campus program" is any program offered for
degree credit away from the institution's main permanent campus.

(c) Any member of the
armed services as defined in G.S. 116-143.3(a), abiding in this State incident
to active military duty, who does not qualify as a resident for tuition
purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition
Grant pursuant to this section if the member is enrolled as a full-time
student. The member's Legislative Tuition Grant shall not exceed the cost
of tuition less any tuition assistance paid by the member's employer.

Sec. 80. (a) Funds appropriated in this act to the
Board of Governors of The University of North Carolina for aid to private
colleges shall be disbursed in accordance with the provisions of G.S. 116-19,
116-21, and 116-22. These funds shall provide up to four hundred fifty
dollars ($450.00) per full-time equivalent North Carolina undergraduate student
enrolled at a private institution as of October 1 of each fiscal year.

These funds shall be placed in a separate, identifiable
account in each eligible institution's budget or chart of accounts. All
funds in this account shall be provided as scholarship funds for needy North
Carolina students during the fiscal year. Each student awarded a scholarship
from this account shall be notified of the source of the funds and of the
amount of the award. Funds not utilized under G.S. 116-19 shall be made
available for the tuition grant program as defined in subsection (b) of this
section.

(b) In addition to any
funds appropriated pursuant to G.S. 116-19, and in addition to all other
financial assistance made available to private educational institutions located
within the State, or to students attending these institutions, there is granted
to each full-time North Carolina undergraduate student attending an approved
institution as defined in G.S. 116-22, a sum not to exceed one thousand one
hundred fifty dollars ($1,150) per academic year, which shall be distributed to
the student as hereinafter provided.

The tuition grants provided for in this section shall be
administered by the State Education Assistance Authority pursuant to rules
adopted by the State Education Assistance Authority not inconsistent with this
section. The State Education Assistance Authority shall not approve any
grant until it receives proper certification from an approved institution that
the student applying for the grant is an eligible student. Upon receipt
of the certification, the State Education Assistance Authority shall remit, at
such times as it shall prescribe, the grant to the approved institution on
behalf and to the credit of the student.

In the event a student on whose behalf a grant has been paid
is not enrolled and carrying a minimum academic load as of October 1 of the
first academic term or on the tenth classroom day following the beginning of
the second school term for which the grant was paid, the institution shall
refund the full amount of the grant to the State Education Assistance
Authority. Each approved institution shall be subject to examination by
the State Auditor for the purpose of determining whether the institution has
properly certified eligibility and enrollment of students and credited grants
paid on the behalf of the students.

In the event there are not sufficient funds to provide each
eligible student with a full grant:

(1) The Board of Governors
of The University of North Carolina, with the approval of the Office of State
Budget and Management, may transfer available funds to meet the needs of the
programs provided by subsections (a) and (b) of this section; and

(2) Each eligible student
shall receive a pro rata share of funds then available for the remainder of the
academic year within the fiscal period covered by the current appropriation.

Any remaining funds shall revert to
the General Fund.

(c) Expenditures made
pursuant to this section shall be used only for secular educational purposes at
nonprofit institutions of higher learning.

In order to encourage and assist private institutions to
continue to educate North Carolina students, the Board of Governors of The
University of North Carolina is hereby authorized to the State Education
Assistance Authority may enter into contracts with the institutions under
the terms of which an institution receiving any funds that may be appropriated
pursuant to this section would agree that, during any fiscal year in which such
funds were received, the institution would provide and administer scholarship
funds for needy North Carolina students in an amount at least equal to the
amount paid to the institution, pursuant to this section, during the fiscal
year. Under the terms of the contracts the Board of Governors ot The
University of North Carolina the State Education Assistance Authority would
agree to pay to the institutions, subject to the availability of funds, a fixed
sum of money for each North Carolina student enrolled at the institutions for
the regular academic year, said sum to be determined by appropriations that
might be made from time to time by the General Assembly pursuant to this
section. Funds appropriated pursuant to this section shall be paid by the
Department of Administration State Education Assistance Authority to
an institution upon recommendation of the Board of Governors of the
University of North Carolina and on certification of the institution
showing the number of North Carolina students enrolled at the institution as of
October 1 of any year for which funds may be appropriated."

(e) G.S. 116-21 reads as
rewritten:

"§ 116-21.
Contract forms; reports; audits; regulations.

The Board of Governors of the University of North Carolina
is authorized to The State Education Assistance Authority may prescribe
the form of the contracts to be executed under G.S. 116-19 and 116-20, to
require of the institutions such reports, statements and audits as the Board
Authority may deem necessary or desirable in carrying out the
purposes of G.S. 116-19 through 116-22 and to make any rules or regulations adopt
rules that will, in the opinion of the Board, Authority, help
to achieve the purposes of G.S. 116-19 through 116-22."

Sec. 81. There is appropriated from overhead
receipts at North Carolina State University to the Board of Governors of The
University of North Carolina for the 1993-94 fiscal year and for the 1994-95
fiscal year the sums of five hundred thousand dollars ($500,000) for the
Furniture Manufacturing and Management Center and three hundred thousand
dollars ($300,000) for technology enhancement in the pulp and paper
manufacturing programs.

Sec. 82. The Board of Governors of The University
of North Carolina shall allocate at least one million four hundred thousand
dollars ($1,400,000) for the 1993-94 fiscal year of its lump sum appropriations
in this act to supplement funds available to the constituent institutions to
implement the new degree programs proposed in the long-range plan that have
received the Board's approval for implementation.

Sec. 83. (a) In the event that the State Medicaid
Plan amendment affecting Pitt County Memorial Hospital reimbursement at full
cost due to its status as a primary affiliated teaching hospital of a
State-operated medical school is not approved by the Health Care Financing
Agency, funds in the amount of five million four hundred twenty thousand nine
hundred ninety-four dollars ($5,420,994) for the 1993-94 fiscal year and five
million eight hundred sixty-five thousand seven hundred thirteen dollars
($5,865,713) for the 1994-95 fiscal year, shall be transferred from the
Division of Medical Assistance, Department of Human Resources, to the East
Carolina University School of Medicine for hospital teaching costs. In
addition, if the amendment is not approved, for the 1993-94 fiscal year, the
amount of ten million six hundred two thousand six hundred ninety-seven dollars
($10,602,697) shall be appropriated from the Savings Reserve Fund to the East
Carolina University School of Medicine for hospital teaching costs. If
the amendment is not approved, the Governor shall notify the General Assembly
of the amendment's failure and of the effecting of this section's
appropriations, and the General Assembly shall address the need for additional
funding for the East Carolina University School of Medicine Hospital Teaching
Costs for the 1994-95 fiscal year in the 1993 General Assembly, Regular Session
1994.

(b) Should the State
Medicaid Plan be changed in the future to alter the proposed amendment, it is
the intent of the General Assembly to fund that portion of Pitt County Memorial
Hospital residents' costs that are not related to the direct care of patients
or not reimbursable from some other source.

Requested by: Senator Ward, Representatives Black, Rogers

ALLIED HEALTH PERSONNEL STUDY/AHEC

Sec. 84. The Director of the North Carolina Area
Health Education Centers program, in conjunction with staff of General
Administration of The University of North Carolina and the North Carolina
Department of Community Colleges, shall make recommendations to the General
Assembly, utilizing data that is currently available, on methods to increase
the number of physical therapists, occupational therapists, speech and language
pathologists, and other related allied health paraprofessional personnel
graduating from the university and community college systems.

A report on these recommendations shall be presented to the
Joint Legislative Education Oversight Committee by May 1, 1994.

(a)There is
established the North Carolina Principal Fellows Commission. The
Commission shall exercise its powers and duties independently of the Board of
Governors of The University of North Carolina. The Director of the Principal
Fellows Program shall staff the Commission. The State Education
Assistance Authority (SEAA) as created in G.S. 116-203 shall be responsible for
implementing scholarship loan agreements, monitoring, cancelling through
service, collecting and otherwise enforcing the agreements for the Principal
Fellows Program scholarship loans established in accordance with G.S.
116-74.42.

(b)The
Commission shall consist of 12 members appointed as follows:

(1)One member
of the Board of Governors of The University of North Carolina appointed by the
chair of that board, notwithstanding G.S. 116-7(b).

(2)One member
of the State Board of Education appointed by the State Board chair.

(3)Two deans of
schools of education appointed by the President of The University of North
Carolina.

(4)One public
school teacher appointed by the General Assembly upon the recommendation of the
President Pro Tempore of the Senate.

(5)One public
school principal appointed by the General Assembly upon the recommendation of
the Speaker of the House of Representatives.

(6)A local
superintendent chosen by the State Superintendent of Public Instruction.

(7)One member
to represent business and industry appointed by the Governor.

(8)One local
school board member appointed by the chair of the State Board of Education.

(9)One parent
of a public school child appointed by the State Superintendent of Public
Instruction.

(10)The chairperson of the
Board of the State Education Assistance Authority.

(11)The director of the
Principal Fellows Program. The director shall chair the Commission.

(c)Initial
appointments shall be made no later than September 15, 1993. Initial
terms of those members appointed to fill the teacher, principal, parent,
superintendent, and the local school board member seats shall expire July 1,
1995. Initial terms of those members appointed to fill the Board of
Governors of The University of North Carolina, State Board of Education, deans
of schools of education, and the member of business and industry seats shall
expire July 1, 1997. Thereafter, all appointments for these seats shall
be for four-year terms.

(d)Except as
otherwise provided, if a vacancy occurs in the membership, the appointing
authority shall appoint another person to serve for the balance of the
unexpired term. In the discretion of the appointing authority, a State
Board of Education member or a member of the Board of Governors of The
University of North Carolina may complete a term on the Commission after the
member's appointment from the appointing board has expired.

(e)Commission
members shall receive per diem, subsistence, and travel allowances in
accordance with G.S. 138-5 or G.S. 138-6, as appropriate.

(f)The
Commission shall meet regularly, at times and places deemed necessary by the
chair.

"§
116-74.42. Principal Fellows Program established; administration.

(a)A Principal
Fellows Program shall be administered by the North Carolina Principal Fellows
Commission in collaboration with the State Education Assistance
Authority. The Principal Fellows Program shall provide up to a two-year
scholarship loan to selected recipients and shall provide extracurricular
enhancement activities for recipients. The North Carolina Principal
Fellows Commission shall determine selection criteria, methods of selection,
and shall select recipients to receive scholarship loans made under the
Principal Fellows Program.

(b)The Board
of Governors of The University of North Carolina shall appoint a director of
the Principal Fellows Program. The director shall chair and staff the
Principal Fellows Commission, and shall administer the extracurricular
enhancement activities of the program. The Board of Governors shall
provide office space and clerical support staff for the program.

(c)The
Principal Fellows Program shall provide a two-year scholarship loan in the
amount of twenty thousand dollars ($20,000) per year, per recipient, to persons
who may be eligible to be selected as school administrators in the public
schools of the State by completing a full-time program in school administration
in an approved program. Approved programs are those chosen by the Commission
from among school administrator programs within the State. No more than
200 principal fellow scholarship loan awards shall be made in each year.
The final number of scholarship loan awards per year shall be made in
accordance with the Board of Governors' findings concerning the supply and
demand of administrators, the State's need for school administrator candidates
and within funds appropriated for the scholarship loans. Effective
September 1, 1995, and in accordance with school administrator training
programs established by the Board of Governors of The University of North
Carolina, recipients shall be required to complete an approved full-time
academic program during the first year of the scholarship loan program and a
full-time internship during the second year of the program. In order to
attract fellows as interns, local school administrative units may use all or
part of the funds allotted for an assistant principal salary for each intern
accepted by the local school administrative unit; however, interns shall not
serve as assistant principals.

(d)The
Commission shall adopt stringent standards, which may include standardized test
scores, undergraduate performance, job experience and performance, leadership
and management abilities, and other standards deemed appropriate by the
Commission, to ensure that only the best potential students receive scholarship
loans under the Principal Fellows Program. The Commission shall consider
the qualifications of all applicants fairly, regardless of gender or race, and
shall consider the geographic diversity of the State. Scholarship loans
under the Principal Fellows Program shall be awarded only to applicants who
meet the standards set by the Commission, are domiciled in North Carolina, and
who agree to work as school administrators in a North Carolina public school or
at a school operated by the United States government in North Carolina upon
completion of the two-year school administrator program supported by the loan.

(e)The
Commission shall develop and administer the Principal Fellows Program in
cooperation with school administrator programs at institutions approved by the
Commission. The Commission shall develop criteria and a process for the
approval of campus program sites. Extracurricular enhancement activities
shall be coordinated with each fellow's campus program and shall focus on the
leadership development of program fellows.

(f)The
Commission may form regional review committees to assist it in identifying the
best applicants for the program. The Commission and the review committees
shall make an effort to identify and encourage women and minorities and others
who may not otherwise consider a career in school administration to apply for
the Principal Fellows Program.

(g)Upon the
naming of recipients of the scholarship loans by the Principal Fellows
Commission, the Commission shall transfer to the State Education Assistance
Authority (SEAA) its decisions. The SEAA shall perform all of the
administrative functions necessary to implement this Article, which functions
shall include: rule making, dissemination of information, disbursement,
receipt, liaison with participating educational institutions, determination of
the acceptability of service repayment agreements, and all other functions
necessary for the execution, payment, and enforcement of promissory notes
required under this Article.

"§
116-74.43. Terms of loans; receipt and disbursement of funds.

(a)All
scholarship loans shall be evidenced by notes made payable to the State
Education Assistance Authority that bear interest at the rate of ten percent
(10%) per year beginning 90 days after completion of the school administrator
program, or 90 days after termination of the scholarship loan, whichever is
earlier. The scholarship loan may be terminated upon the recipient's
withdrawal from school or by the recipient's failure to meet the standards set
by the Commission.

(b)The State
Education Assistance Authority shall forgive the loan if, within six years after
graduation from a school administrator program, the recipient serves for four
years as a school administrator at a North Carolina public school or at a
school operated by the United States government in North Carolina. The
SEAA shall also forgive the loan if it finds that it is impossible for the
recipient to work for four years, within 10 years after completion of the
two-year school administrator program supported by the scholarship loan at a
North Carolina public school, or at a school operated by the United States
government in North Carolina, because of the death or permanent disability of
the recipient. If the recipient repays the scholarship loan by cash
payments, all indebtedness shall be repaid within 10 years after completion of
the two-year school administrator program supported by the scholarship loan.

(c)All funds
appropriated to, or otherwise received by, the Principal Fellows Program for
scholarships, all funds received as repayment of scholarship loans, and all
interest earned on these funds, shall be placed in a university trust
fund. This university trust fund may be used only for scholarship loans
granted under the Principal Fellows Program and administrative costs associated
with the recovery of funds advanced under the program."

(b) G.S. 135-40.2(a)
reads as rewritten:

"(a) The following persons
are eligible for coverage under the Plan, on a noncontributory basis, subject
to the provisions of G.S. 135-40.3:

(1) All permanent
full-time employees of an employing unit who meet the following conditions:

a. Paid from
general or special State funds, or

b. Paid from
non-State funds and in a group for which his or her employing unit has agreed
to provide coverage.

Employees of State agencies,
departments, institutions, boards, and commissions not otherwise covered by the
Plan who are employed in permanent job positions on a recurring basis and who
work 30 or more hours per week for nine or more months per calendar year are
covered by the provisions of this subdivision.

(1a) Permanent hourly employees as
defined in G.S. 126-5(c4) who work at least one-half of the workdays of each
pay period.

(2) Retired teachers,
State employees, members of the General Assembly, and retired State law
enforcement officers who retired under the Law Enforcement Officers' Retirement
System prior to January 1, 1985.

(2a) Surviving spouses of:

a. Deceased
retired employees, provided the death of the former plan member occurred prior
to October 1, 1986; and

b. Deceased
teachers, State employees, and members of the General Assembly who are
receiving a survivor's alternate benefit under any of the State-supported
retirement programs, provided the death of the former plan member occurred
prior to October 1, 1986.

(3a) Employees of the General
Assembly, not otherwise covered by this section, as determined by the
Legislative Services Commission, except for legislative interns and pages.

(4) Members of the General
Assembly.

(5)Notwithstanding
the provisions of subsection (e) of this section, employees on official leave
of absence while completing a full-time program in school administration in an
approved program as a Principal Fellow in accordance with Article 5C of Chapter
116 of the General Statutes."

(c) The Commission may
grant up to 50 scholarship loans during the 1994-95 fiscal year to recipients
enrolled in school administrator programs approved by the Commission.

(d) G.S. 120-123 is
amended by adding a new subdivision to read:

"(59a)The North Carolina Principal
Fellows Commission established by G.S. 116-74.41."

Sec. 86. (a) The Board of Governors of The
University of North Carolina and the State Board of Education shall convene a
Joint Committee to study how to establish a School Leadership Academy to serve
the needs of all school administrators throughout the State. There shall
be nine members of the Joint Committee. Members shall receive per diem,
subsistence, and travel allowances in accordance with G.S. 138-5, or G.S.
138-6, as appropriate. Appointments to the committee shall be made within
30 days of ratification of this act. Except as otherwise provided, if a
vacancy occurs in the membership, the appointing authority shall appoint
another person to serve for the balance of the unexpired term. At the
discretion of the appointing authority, Joint Committee members may continue to
serve on the Joint Committee after their appointment to the Board of Governors
or the State Board of Education has expired. Appointments shall be made
as follows:

(1) Three members of the
Board of Governors appointed by the Chair of the Board of Governors; one of the
three shall be designated cochair of the Joint Committee.

(2) Three members of the
State Board of Education appointed by the Chair of the State Board of Education;
one of the three shall be designated cochair of the Joint Committee.

(3) The Superintendent of
Public Instruction, or a designee.

(4) One dean of a school
of education appointed by the President of The University of North Carolina.

(5) The President of the
North Carolina Association of Independent Colleges and Universities, or a
designee.

(b) In its planning the
Joint Committee shall consider:

(1) The recommendations of
the report submitted to the 1993 General Assembly by the Educational Leadership
Task Force.

(2) How to incorporate all
or part of the Principal's Executive Program into the Educational Leadership
Academy.

(3) A design for a
governing board for the Educational Leadership Academy composed of persons who
have demonstrated a commitment to improving educational leadership in the State
including practicing school administrators and professors of schools of
education.

(4) A charge to the
governing board that ensures coordination between the Educational Leadership
Academy and the initial preparation programs.

(5) How the State Board of
Education shall ensure that all school administrators be required to complete
at least five of their 15 continuing education units for continued practice in
the profession in Educational Leadership Academy programs or in programs
endorsed by the Educational Leadership Academy's governing board.

(6) How to ensure that
coordinated and geographically dispersed professional development opportunities
exist for school administrators.

(7) What facilities and
staff are needed for the Academy; the Joint Committee shall recommend whether a
building is needed, and, if so, whether there is an existing building that can
be used to meet the needs of the Academy, or if a new building is needed.

(8) The cost of its
recommendations which shall be included in its report to the Joint Legislative
Education Oversight Committee.

(c) The General
Administration of The University of North Carolina shall provide meeting rooms,
telephone, office space, equipment, and supplies to the Joint Committee without
charge.

(d) The General
Administration of The University of North Carolina and the Department of Public
Instruction shall provide staff to the Joint Committee.

(e) Upon the request of
the cochairs of the Joint Committee, all State departments and agencies, all
local governments and their subdivisions, and all institutions approved to
train public school administrators shall furnish the Committee with any
nonconfidential information in their possession or available to them.

(f) The Joint
Committee shall report on its findings and the recommendations concerning the
establishment of the School Leadership Academy to the Joint Legislative
Education Oversight Committee no later than March 1, 1994. The Joint
Committee shall terminate on that date.

(g) Of the funds
appropriated to the Board of Governors for the 1993-94 fiscal year, up to the
sum of fifteen thousand dollars ($15,000) shall be used to conduct the work of
the Joint Committee. Of the funds appropriated to the Department of
Public Education for aid to local school administrative units for the 1993-94
fiscal year, up to the sum of fifteen thousand dollars ($15,000) shall be used
to conduct the work of the Joint Committee.

Requested by: Representative Nesbitt, Senator Daniel

ECU MEDICAL SCHOOL RECEIPTS

Sec. 87. (a) The East Carolina University School of
Medicine shall request, on a regular basis consistent with the State's cash
management plan, funds earned by the School from Medicare reimbursements for
education costs. Upon receipt, these funds shall be allocated as follows:

(1) The portion of the
Medicare reimbursement generated through the effort and expense of the School
of Medicine's Medical Faculty Practice Plan shall be transferred to the
appropriate Medical Faculty Practice Plan account within the School of
Medicine. The Medical Faculty Practice Plan shall assume responsibility
for any of these funds that subsequently must be refunded due to final audit
settlements.

(2) The funds from this
source budgeted by the General Assembly as part of the School of Medicine's
General Fund budget code shall be credited to that code as a receipt.

(3) The remainder of the
funds shall be transferred to a special fund account on deposit with the State
Treasurer. This special fund account shall be used for any necessary
repayment of Medicare funds due to final audit settlements for funds allocated
under subdivision (2) of this subsection. When the amount of these
reimbursement funds has been finalized by audit for each year, those funds
remaining in the special fund shall be available for appropriation by the
General Assembly. The General Assembly shall consider the capital
improvement needs of the East Carolina University School of Medicine before
appropriating money from this fund.

Funds in this special fund account
as of July 1, 1993, shall be subject to this subsection.

(b) Receipts from the
lease of the Magnetic Resonance Imaging building and equipment may be retained
by the East Carolina School of Medicine in an institutional trust fund account
for maintenance of the facility and for improvements in the facility. The
receipts, fund balances, and allocations shall be indicated annually on reports
to the Office of State Budget and Management, UNC General Administration, and
the Fiscal Research Division of the General Assembly.

(c) All revenue for the
treatment of patients in the Radiation Therapy Facility shall accrue to the
East Carolina University School of Medicine Medical Faculty Practice Plan
accounts. The Medical Faculty Practice Plan shall reimburse the General
Fund budget code quarterly for operating costs of the facility paid by the
General Fund. The reimbursement amount shall be limited to that portion
of receipts actually collected for the facility charges portion of billings.

(d) This section shall
remain in effect until changed or repealed by the General Assembly.

Sec. 89. (a) In order to monitor institutional
progress in meeting the expectation of Item 1 of the "Plan to Improve Graduation
Rates in The University of North Carolina" that full-time undergraduates
will take an average of 15 semester hours per term, the Board of Governors
shall require constituent institutions to set a goal of increasing to 15 the
average number of credit hours per term taken by full-time
undergraduates. This goal shall be met systemwide and by each constituent
institution no later than December of 1997. The Board shall instruct all
institutions to report on their progress in meeting their goals in their annual
assessment reports. The Board shall require those institutions failing to
make timely progress to submit special reports identifying additional steps to
be taken. The Board shall report annually by April 1 to the Joint
Legislative Education Oversight Committee on the progress of each constituent
institution in meeting these goals.

(b) The Board of
Governors of The University of North Carolina shall ensure that procedures are
established that are necessary to impose a twenty-five percent (25%) tuition
surcharge on students who take more than 140 degree credit hours to complete a
baccalaureate degree in a four-year program or more than one hundred ten
percent (110%) of the credit hours necessary to complete a baccalaureate degree
in any program officially designated by the Board of Governors as a five-year
program. The calculation of these credit hours taken at a constituent
institution or accepted for transfer shall exclude hours earned through the
College Board's Advanced Placement or CLEP examinations, through institutional
advanced placement or course validation, or through summer term or extension
programs. The Board shall report to the Joint Legislative Education
Oversight Committee by April 1, 1994, on its recommendations for implementing
this surcharge.

(c) The Board of
Governors of The University of North Carolina shall allocate two hundred fifty
thousand dollars ($250,000) from overhead receipts each year of the biennium
for establishing faculty awards for excellent teaching, with special emphasis
on those campuses that do not currently have such a recognition system.

(d) Any funds allocated
by the Board of Governors from the Reserve for University Operations in this
act to the Distinguished Professors Endowment Trust Fund shall be used only for
the establishment of endowed chairs that recognize excellence in undergraduate
teaching as the primary criterion for selection.

(e) None of the funds
appropriated for increases in enrollment at the constituent institutions of The
University of North Carolina shall be used to increase the overall time
available for teaching faculty to perform research or service activities.
The Board of Governors shall prepare a report for the Joint Legislative Education
Oversight Committee on the impact of these enrollment increase funds on faculty
teaching workloads at each institution. This report shall be presented to
the Joint Legislative Education Oversight Committee by May 1, 1994.

(f) The State
Education Assistance Authority shall gather sufficient data from the private
institutions of higher education whose students receive Legislative Tuition
Grants to determine the number of cumulative academic terms for which students
receive the Legislative Tuition Grants and to determine each private
institution's requirements for satisfactory academic progress towards a degree.

Sec. 90. Of the funds appropriated to the Board of
Governors of The University of North Carolina in this act for Agricultural
Programs at North Carolina State University, the Board of Governors shall use
at least five hundred thousand dollars ($500,000) for the 1993-94 fiscal year
and the sum of five hundred thousand dollars ($500,000) for the 1994-95 fiscal
year to fund additional staff and operating costs at the Tidewater Research
Station, and these funds shall not be expended at any other location.

Sec. 91. Of the funds appropriated in this act to
the Board of Governors of The University of North Carolina for Institutional
Programs, the Board of Governors shall allocate at least eleven million
eighty-four thousand dollars ($11,084,000) for the 1993-94 fiscal year and at
least two million six hundred five thousand six hundred seventy-seven dollars
($2,605,677) for Lines 2 and 4 of the Schedule of Priorities, to enhance
library networks and library operations.

Sec. 92. Of the funds appropriated in this act to
the Board of Governors of The University of North Carolina for institutional
programs, the Board of Governors shall allocate forty-three thousand four
hundred seventy-two dollars ($43,472) for the 1993-94 fiscal year and the sum
of forty-three thousand four hundred seventy-two dollars ($43,472) for the
1994-95 fiscal year, for the University of North Carolina Center for Public
Television for the Sesame Street Pre-Educational Program.

Sec. 93. Of the funds appropriated in this act to
the Board of Governors of The University of North Carolina for institutional
programs, the Board of Governors shall allocate at least one million dollars
($1,000,000) for the 1993-94 fiscal year and at least one million dollars
($1,000,000) for the 1994-95 fiscal year to Line 11 of the Schedule of
Priorities, to address the funding levels of various institutions.

Sec. 94. There is appropriated from overhead
receipts of the University of North Carolina at Chapel Hill for the University
of North Carolina at Chapel Hill, School of Public Health, the sum of fifty
thousand dollars ($50,000) for the 1993-94 fiscal year to conduct a study of
childhood hunger in North Carolina. The study shall:

(1) Examine the extent of
hunger among children in the State and its counties;

(2) Examine the
availability and use of publicly funded feeding programs; and

(3) Examine the
association between hunger and child health.

The School of Public Health shall
report its findings to the General Assembly on or before March 1, 1994.

Sec. 95. North Carolina State University, through
the Cooperative Extension Service, shall provide from funds appropriated to
North Carolina State University for the Cooperative Extension Service in this
act for the 1993-95 fiscal biennium a full-time extension forestry specialist
and related support services to assist growers with problems related to the
culturing and production of Christmas trees. The position and support
services provided by this section shall provide a level of assistance to
growers at least comparable to the assistance available at the beginning of the
1992-93 fiscal year.

Sec. 96. (a) Of the funds appropriated to the Board
of Governors of The University of North Carolina in the Reserve for University
Operations, the sum of one hundred thirty-six thousand dollars ($136,000) shall
be allocated for the 1993-94 fiscal year and the sum of one hundred thirty-six
thousand dollars ($136,000) shall be allocated for the 1994-95 fiscal year to
support the Mountain Aquaculture Research Center at Western Carolina
University.

(b) Of the funds appropriated
to the Board of Governors of The University of North Carolina for the
Cooperative Extension Service, the sum of sixty-four thousand dollars ($64,000)
for each year of the 1993-95 fiscal biennium shall be used to support research
and extension programs to benefit the cold-water aquaculture industry of the
State by establishing a program to coordinate the production of trout with the
timing, processing capacities, and flesh quality characteristics needed by
trout processors in North Carolina, and to assist growers in obtaining
commitments from processors for the purchase of the fish.

(c) The focus of the
coordination efforts shall begin on trout farms in Graham County and
surrounding areas. With assistance from the North Carolina Cooperative Extension
Service, the project will survey trout producers to establish a current
inventory of trout on the farms and to determine the production capacity of the
farms. Based upon the ability of the processors to market the fish, the
project will establish production schedules for trout producers which coincide
with the scheduled purchases by processors.

(d) The North Carolina
Cooperative Extension Service will establish demonstration projects at three
facilities in Graham County for the purpose of demonstrating appropriate waste
management and methods of reducing the costs of trout production. With
trout producers' cooperation, these projects will focus upon production of
additional plant and animal crops using waste materials from trout production and
techniques for improving feed conversion efficiency, production forecasting,
and farm record keeping.

(e) The North Carolina
Cooperative Extension Service shall cooperate with the Mountain Area
Aquaculture Research Center and Western Carolina University in carrying out
this section.

Sec. 97. Of the funds appropriated to the Board of
Governors of The University of North Carolina in the Reserve for University
Institutional Programs in this act, the sum of two hundred twenty-five thousand
dollars ($225,000) for the 1993-94 fiscal year and the sum of two hundred
twenty-five thousand dollars ($225,000) for the 1994-95 fiscal year shall be
used to establish and operate an interdisciplinary diabetes program at the
School of Medicine at the University of North Carolina at Chapel Hill.

Sec. 98. Of the funds appropriated to the Board of
Governors of The University of North Carolina in this act, the sum of fifty
thousand dollars ($50,000) for the 1993-94 fiscal year and the sum of fifty
thousand dollars ($50,000) for the 1994-95 fiscal year shall be used for the
Area Health Education Center program to contract for training of certified,
registered nurse anesthetists.

Sec. 99. Of the funds appropriated to the Board of
Governors of The University of North Carolina in this act for Agricultural
Programs, the sum of one hundred twenty-five thousand dollars ($125,000) for
the 1993-94 fiscal year and the sum of one hundred twenty-five thousand dollars
($125,000) for the 1994-95 fiscal year shall be allocated to North Carolina
State University, College of Agriculture and Life Science, for the Seafood
Laboratory Program located in Morehead City, to provide extension education and
an applied research program for the North Carolina seafood industry.

Sec. 100. Of the funds appropriated to the Board of
Governors of The University of North Carolina for University Operations, the
sum of one hundred thousand dollars ($100,000) for the 1993-94 fiscal year and
the sum of one hundred thousand dollars ($100,000) for the 1994-95 fiscal year
shall be allocated to the University of North Carolina Center for Public
Television to provide public schools in the State access to LEARNING LINK, a
computer-based interactive communications system.

Sec. 101. In its allocations from the Reserve for
University Operations for its Schedule of Priorities, the Board of Governors of
The University of North Carolina shall allocate at least eight hundred thousand
dollars ($800,000) for the 1993-94 fiscal year and at least eight hundred
thousand dollars ($800,000) for the 1994-95 fiscal year for enhancement of the
School of Law at North Carolina Central University, to address the
accreditation concerns of the American Bar Association, as addressed by the
budget requests of the campus. The total allocations shall include at
least three hundred thousand dollars ($300,000) each fiscal year for operating
enhancement of the School of Law library and sufficient funds to link North
Carolina Central University fully with the Triangle Research Libraries Network
and the statewide network.

Sec. 101.1. Of the funds appropriated to the Board
of Governors of The University of North Carolina for University Institutional
Programs, the sum of seven million one hundred thousand dollars ($7,100,000)
for the 1993-94 fiscal year and the sum of seven million one hundred thousand
dollars ($7,100,000) for the 1994-95 fiscal year shall be allocated by the
Board of Governors for the enhancement of teaching faculty salaries as the Board
of Governors considers appropriate.

Sec. 101.2. Of the funds appropriated to the Board
of Governors of The University of North Carolina in this act, the sum of six
hundred thousand dollars ($600,000) in each year of the 1993-95 fiscal biennium
shall be allocated by the Board to establish four new cooperative educational
consortia at Appalachian State University, East Carolina University, North
Carolina Central University, and the University of North Carolina at Charlotte.

These consortia shall link elementary
and secondary education, higher education, and leadership in the business
sector to:

(1) Improve education practices
and enhance economic development;

(2) Focus research
capabilities on educational issues and economic problems;

(3) Provide momentum for
restructuring of public education to meet the requirements of the modern era;

(4) Seek grants and other
funds for model projects on promising educational practices;

(5) Provide training,
educational, and leadership development opportunities; and

(6) Provide other
initiatives leading to improvements in education and economic development.

Sec. 101.3. Of the funds appropriated to the Board
of Governors of The University of North Carolina, the sum of two million one
hundred thousand dollars ($2,100,000) for the 1993-94 fiscal year and the sum
of two million one hundred thousand dollars ($2,100,000) for the 1994-95 fiscal
year shall be used, according to Area Health Education Center Program plans, to
expand programs for training primary care medical students, residents, and
other health professionals in community settings. These settings include
private practices, health departments, and community health services.
These funds may be used to develop new programs and to expand existing programs
to assure well-supervised outreach training sites.

Sec. 101.4. Students in programs leading to
employment in the field of cytotechnology are eligible to apply for scholarship
loans under the Health, Science, and Mathematics Student Loan Program
administered by the State Education Assistance Authority.

Sec. 101.5. (a) There is established the
Legislative Study Commission on the Status of Education at The University of
North Carolina. The Commission shall be composed of 12 members, six
Senators appointed by the President Pro Tempore of the Senate, and six
Representatives appointed by the Speaker of the House of Representatives.
All members shall be appointed within 30 days following adjournment of the 1993
Regular Session of the 1993 General Assembly.

(b) The President Pro
Tempore of the Senate and the Speaker of the House of Representatives shall
each designate one appointee as cochair. These cochairs shall jointly
call the first meeting and shall preside at alternate meetings.

(c) The Commission shall
study the following areas:

(1) Undergraduate
education at The University of North Carolina, including:

a. Rewards and
incentives for quality undergraduate teaching;

b. Assessment
and evaluation of faculty teaching, and the role of this assessment in the
rewards system, including salary increases and the granting of tenure;

c. Academic
support systems for undergraduates, including underprepared students;

d. The
consistent establishment of minimum standards for college-level coursework and
the success rates of students in remedial or developmental programs;

e.
Accessibility of higher education to qualified residents of the State; and

f.
Student contact with tenured faculty and the use of teaching assistants;

(2) University funding
issues, including:

a. Equity of
funding among the constituent institutions, considering the differences in institutional
missions and academic programs;

b. The effect
of budget flexibility on the ability of each campus to carry out its mission in
an effective manner;

c. The impact
of allowing campuses to retain a greater proportion of indirect costs
reimbursement from research grants (overhead receipts);

d. Total
funding sources available for each constituent institution and each affiliated
entity, including institutional trust funds, research grants, gifts, grants,
and donations, expenditures for the benefit of the campus by private groups or
foundations, and other sources of revenue;

e. The
projected impact of changing the State funding for a full-time equivalent
student from 12 semester hours to 15 semester hours for undergraduate students;

f.
Changes in faculty teaching loads and student course loads over the past 10
years; and

g.
Affordability of higher education, including existing financial aid programs,
alternative methods of providing student financial aid, and various plans for
saving for college education; and

(3) University education
quality issues, including:

a. The impact
and effect of research on the teaching mission of The University of North
Carolina;

b. Quality and
current levels of services of all the libraries in The University of North
Carolina;

c. Faculty
salaries and other compensation relative to similar and peer public
institutions in other states; and

d. The
relative quality of all 16 campuses compared to peer institutions and to
changes in quality of each of the 16 campuses over time.

(d) Members of the
Commission shall receive subsistence and travel expenses at the rates set forth
in G.S. 120-3.1.

(e) The Commission
cochairs may contract for professional, clerical, or consultant services as
provided by G.S. 120-32.02, may purchase or contract for the materials and
services it needs, and may contract with an individual who has an excellent
national reputation in the area of evaluating the quality of public higher
education to facilitate its work.

The Legislative Services Commission, through the Legislative
Administrative Officer, shall assign professional staff to assist in the work of
the Commission. The Supervisors of Clerks of the House of Representatives
and of the Senate, upon the direction of the Legislative Services Commission,
shall assign clerical staff to the Commission. The expenses related to
the clerical employees shall be borne by the Commission.

(f) The Commission,
with the approval of the Legislative Services Commission, may meet in the
Legislative Building or the Legislative Office Building.

(g) The Commission shall
make an interim report to the Joint Legislative Education Oversight Committee
no later than April 15, 1994, and shall make a final report to the Joint
Legislative Education Oversight Committee no later than February 15, 1995, at
which time the Commission shall terminate.

(h) Upon the request of
the Commission, all State departments and agencies, all local governments and
their subdivisions, and all institutions and departments under the jurisdiction
of the Board of Governors of The University of North Carolina shall furnish the
Commission with any information in their possession or available to them.

(i) Of the funds
appropriated in this act to the General Assembly for the 1993-94 fiscal year,
the sum of one hundred thousand dollars ($100,000) shall be available to fund
the work of the Legislative Study Commission on the Status of Education at The
University of North Carolina.

PART 16. COMMUNITY COLLEGES

Requested by: Senator Ward, Representatives Black, Rogers

COURSE REPETITION POLICY

Sec. 102. (a) No full-time equivalent students
(FTE) shall be generated for occupational extension students after the first
repetition of an occupational extension class. Except as provided in
subsection (b) of this section, if students take an occupational extension
class more than twice, they shall pay the full amount of the per student cost
for the class and the community college shall earn no budget FTE for these
students.

(b) Community colleges
may permit a student to repeat a course more than once if that student
demonstrates that the course repetition is required by standards governing the
certificate or licensing program in which the student is enrolled.
Colleges permitting this course repetition shall earn budget FTE for the
student and shall report on a regular basis to the State Board on the students
they have permitted this course repetition and on the certification or
licensure requirements that necessitated it.

(c) The State Board of
Community Colleges shall conduct a review of all occupational extension
courses, including their content, length, definition, and common course
title. It shall ensure that these courses are classified appropriately as
occupational extension and are not actually community services courses.

Requested by: Senator Ward, Representatives Black, Rogers

AUDIT POLICIES

Sec. 103. (a) The State Board of Community Colleges
shall require that the program auditors shall use a minimum twenty-five percent
(25%) sample size in their audits of community colleges.

(b) The State Board of
Community Colleges shall require colleges to repay funds for all programs, not
just full-time equivalent (FTE) student-producing programs, that are not in
compliance with rules adopted by the State Board or by State or federal law.

(c) If a community
college is in violation of a State or federal law or of a State Board rule, the
program auditors shall cite the college for an audit exception and not a
concern. The State Board shall clarify its rules in order to improve
colleges' compliance with this section.

(d) The State Board shall
assess a twenty-five percent (25%) fiscal penalty in addition to the audit
exception on all audits of both dollars and student membership hours excepted.

(e) Community colleges
with FTE audit exceptions shall not benefit from the two-year averaging
provision for the FTE audit exception.

Requested by: Senator Ward, Representatives Black, Rogers

COMMUNITY COLLEGE IN-PLANT
TRAINING

Sec. 104. (a) The State Board of Community Colleges
shall operate in-plant training programs in accordance with the rules adopted
by the State Board on April 8, 1993, except that the State Board may increase
the administrative overhead percentage from fifteen percent (15%) to
twenty-five percent (25%).

(b) The State Board of
Community Colleges shall not approve funding for any in-plant training programs
authorized by G.S. 115D-5(d) without first making a written finding that the
public's interest in the program predominates over the private interests of the
company. The State Board shall adopt rules for determining when private
interests predominate over the public's interest.

(b) The State Board of
Community Colleges shall develop a plan for the delivery of appropriate
education in correctional facilities. This plan shall address the length
and type of course, taking into consideration the mobility of the prison
population. The State Board shall report its plan to the General Assembly
by May 1, 1994.

Requested by: Senator Ward, Representatives Black, Rogers

HUSKINS PROGRAM

Sec. 106. (a) The State Board of Community Colleges
shall ensure that all courses offered to high school students under Huskins
Bill programs are limited to college level courses that are not available or
could not be offered by the local high schools.

(b) The State Board of
Community Colleges shall use funds from its State Board Reserve to study all
courses offered through each community college's Huskins Bill programs.
This study shall compare the courses offered by the high schools in the area of
advance placement and vocational and technical programs. It shall also
indicate how each high school with Huskins Bill courses spends its State and
federal vocational education funds, including which courses were offered with
these funds for the 1991-92 and 1992-93 fiscal years. The State Board
shall assess the extent to which Huskins Bill programs are duplicating or
supplanting the course offerings of high schools. In addition, the study
shall review each Huskins Bill course to ensure that it is college level work.

(c) The local education
agencies (LEAs) and the State Board of Education shall cooperate by providing
the information necessary to complete this study.

(d) The State Board of
Community Colleges shall report the findings of this study to the General
Assembly by May 1, 1994.

Requested by: Senator Ward, Representatives Black, Rogers

COMMUNITY COLLEGE SHELTERED
WORKSHOPS/ADAP FUNDS TRANSFER

Sec. 107. In order to achieve administrative
efficiencies, it is the intent of the General Assembly to provide funds for
sheltered workshops through the Department of Human Resources' Adult
Developmental Activity Program (ADAP). Of the funds appropriated to the
Division of Mental Health, Developmental Disabilities, and Substance Abuse
Services, Department of Human Resources, in this act, the sum of one million
fifty-nine thousand two dollars ($1,059,002) for each year of the 1993-95
biennium shall be used for providing funds to the sheltered workshops/ADAPs
that received funds or services from local community colleges during the
1992-93 Budget FTE Year. The Department of Human Resources shall not use
any of these funds for administration. No State funds shall be used by
community colleges to provide training in sheltered workshops, except for
compensatory education and literacy programs.

Requested by: Senator Ward, Representatives Black, Rogers

REMEDIATION MEASURES

Sec. 108. (a) The State Board of Community Colleges
shall study the different tests used by colleges to place students in
developmental courses. This study shall determine appropriate tests and
proficiency levels to be used in selecting and placing students in
developmental courses.

(b) The State Board shall
report its findings to the General Assembly by May 1, 1994.

Requested by: Senator Ward, Representatives Black, Rogers

COMMUNITY COLLEGE ACCOUNTABILITY
MEASURES

Sec. 109. (a) The State Board of Community Colleges
shall establish standards for levels of institutional performance on those
critical success factors that can be appropriately measured to indicate how
individual colleges are performing in meeting the goals of the North Carolina
Community College System. Each community college shall report its
performance on these measures to the State Board. Colleges that fail to
attain any of the the standards in any year shall report to the State Board the
reasons why performance fell below standards and the steps being taken to meet
the standards.

(b) The State Board of
Community Colleges shall study models for measuring institutional
effectiveness, such as the Desktop Audit used by Coastal Carolina Community
College, and shall direct community colleges to utilize similar models in providing
accountability information to the State Board for the General Assembly.
Colleges shall provide information on graduate placement rates and employer,
graduate, and early leavers satisfaction with college programs to the State
Board. In addition, the State Board shall direct colleges to follow up on
early leavers from their programs to determine, to the extent possible, the
reasons for their withdrawal from college programs.

(c) The State Board of
Community Colleges shall report on its implementation of subsections (a) and
(b) of this section to the General Assembly by May 1, 1994.

Requested by: Senator Ward, Representatives Black, Rogers

MAINTENANCE OF PLANT

Sec. 110. Article 3 of Chapter 115D of the General Statutes
is amended by adding a new section to read:

"§
115D-31.2. Maintenance of plant.

Notwithstanding any provisions of law to the contrary, any
community college that has an out-of-county student head count served on the
main campus of the college in excess of fifty percent (50%) of the total
student head count as defined by the State Board of Community Colleges, shall
be provided funds for the purpose of 'operations of plant'. These funds
shall not exceed eighty-five percent (85%) of the funds allocated to these
colleges during the 1990-91 fiscal year for this purpose."

Requested by: Senator Ward, Representatives Black, Rogers

OPERATING APPROPRIATIONS/NOT USED
FOR RECREATION EXTENSION

Sec. 111. Chapter 115D-5 is amended by adding a new
subsection to read:

"(g)Funds
appropriated to the Department of Community Colleges as operating expenses for
allocation to the institutions comprising the North Carolina Community College
System shall not be used to support recreation extension courses. The financing
of these courses by any institution shall be on a self-supporting basis, and
membership hours produced from these activities shall not be counted when
computing full-time equivalent students (FTE) for use in budget-funding
formulas at the State level."

Requested by: Senator Ward, Representatives Black, Rogers

FULL-TIME EQUIVALENT TEACHING
POSITIONS/COMMUNITY COLLEGES

Sec. 112. For the purpose of determining the
community college system-wide number of full-time equivalent (FTE) student
enrollment each year, the total curriculum full-time equivalent student
enrollment shall be divided by the appropriate number for each year of the
1993-95 fiscal biennium pursuant to funds appropriated in this act for this
purpose. The occupational extension full-time equivalent student
enrollment shall be divided by 23 for the 1993-95 fiscal biennium.

Requested by: Senator Ward, Representatives Black, Rogers

BOOKS AND EQUIPMENT
APPROPRIATIONS/REVERT AFTER ONE YEAR

Sec. 113. Appropriations to the Department of Community
Colleges for equipment and library books are made for each year of the fiscal
biennium. All unencumbered appropriations shall revert to the General
Fund 12 months after the close of each fiscal year for which they were
appropriated. Encumbered balances outstanding at the end of each period
shall be handled in accordance with existing State budget policies. The
Department shall be able to identify to the Office of State Budget and
Management which appropriations will revert at the end of the 12 months after
the close of each fiscal year.

Requested by: Senators Ward, Conder, Representatives
Black, Rogers

"TECH PREP"IMPLEMENTATION

Sec. 114. Of the funds available to State-aid to
local school administrative units for vocational education, fifty thousand
dollars ($50,000) for the 1993-94 fiscal year and fifty thousand dollars
($50,000) for the 1994-95 fiscal year, shall be allocated to the North Carolina
Tech Prep Leadership Development Center at Richmond Community College for
assistance to local education agencies and community colleges in planning and
implementing "Tech Prep" across the State. The Department of
Community Colleges shall allocate fifty thousand dollars ($50,000) each fiscal
year from funds available to it for the 1993-94 fiscal year and for the 1994-95
fiscal year for the North Carolina "Tech Prep" Leadership Development
Center at Richmond Community College.

Requested by: Representatives Nesbitt, Black, Rogers,
Senator Ward

COMMUNITY COLLEGE FACULTY SALARIES

Sec. 115. (a) The General Assembly appropriated
thirty-two thousand seven hundred ninety-six dollars ($32,796) as the unit
value for community college curriculum faculty during the 1992-93 fiscal
year. The Southern Regional Education Board states' average salary for full-time
community college faculty was thirty-two thousand fifteen dollars ($32,015) in
the 1991-92 fiscal year. While the average community college curriculum
faculty salary for the Community College System was thirty-three thousand
thirty-five dollars ($33,035) for the 1992-93 fiscal year, there were 34
colleges in the System that paid less than the unit value. Beginning with
the 1993-94 fiscal year, each community college shall pay its full-time
curriculum faculty an average salary that is the amount appropriated by the
General Assembly for the curriculum unit value in the System's funding
formula. For the 1993-94 fiscal year, the amount appropriated for the
curriculum unit value is thirty-four thousand two hundred sixty-two dollars
($34,262).

(b) The State Board of
Community Colleges may grant a community college an exemption from the
requirement of subsection (a) of this section if it finds sound educational
reasons for such an exemption. The State Board shall report each year by
May 1 to the Joint Legislative Commission on Governmental Operations on any
exemptions granted under this section, including the reasons for the
exemptions.

Requested by: Representatives Black, Rogers, Bowman,
Senator Ward

HOSIERY TECHNOLOGY CENTER FUNDS

Sec. 116. Of the funds appropriated to the
Department of Community Colleges in this act for specialized technology
centers, fifty thousand dollars ($50,000) for the 1993-94 fiscal year and fifty
thousand dollars ($50,000) for the 1994-95 fiscal year shall be used to
establish a Hosiery Technology program at the Center for Applied Textile
Technology to provide technological services to hosiery manufacturers operating
in North Carolina.

(a) The General Assembly
finds that the tuition policy of the North Carolina Community College System
needs to be reexamined in order to reflect better the constitutional mandate to
provide higher education free of expense "as far as practicable"by
reevaluating the relationship of tuition to the cost of education and by
determining what costs must be made up of tuition charged in order to ensure
that all eligible North Carolinians are indeed guaranteed a public higher
education in the North Carolina Community College System at the lowest possible
cost while maintaining a public community college system that is worthy of the
support of all North Carolinians.

(b) The General Assembly
finds that tuition and required fees charged for community colleges should be a
limited amount of resident students' per capita student funding.

(c) The State Board of
Community Colleges shall develop a tuition/fee policy consistent with law that
limits tuition and required fees to a specific percentage of less than
one-fifth of the per capita student funding for resident students attending
community colleges.

(d) The State Board of
Community Colleges shall present its plan for implementing the tuition
adjustments pursuant to this section to the General Assembly by April 1, 1994.

(e) G.S. 115D-5(a) reads
as rewritten:

"(a) The State Board of
Community Colleges may adopt and execute such policies, regulations and
standards concerning the establishment, administration, and operation of
institutions as the State Board may deem necessary to insure the quality of
educational programs, to promote the systematic meeting of educational needs of
the State, and to provide for the equitable distribution of State and federal
funds to the several institutions.

The State Board of Community Colleges shall establish
standards and scales for salaries and allotments paid from funds administered
by the State Board, and all employees of the institutions shall be exempt from
the provisions of the State Personnel Act. The State Board shall have authority
with respect to individual institutions: to approve sites, buildings, building
plans, budgets; to approve the selection of the chief administrative officer;
to establish and administer standards for professional personnel, curricula,
admissions, and graduation; to regulate the awarding of degrees, diplomas, and
certificates; to establish and regulate student tuition and fees and
financial accounting procedures. within policies for tuition and fees
established by the General Assembly; and to establish and regulate financial
accounting procedures."

(f) This section
becomes effective July 1, 1993.

Sec. 118. COMMUNITY COLLEGE SYSTEM FUNDING GOAL.

(a) It is the goal of the
General Assembly to increase the per student funding for the North Carolina
Community College System, as soon as fiscal conditions permit, to a level more
comparable to national averages for similar institutions.

(b) This section becomes
effective July 1, 1993.

Sec. 119. COMMUNITY COLLEGE STUDY.

(a) In addition to its
other duties, the State Board of Community Colleges shall undertake a
comprehensive review of the mission of the North Carolina Community College
System in order to ensure that it is well-prepared to meet changing educational
and economic needs as the State moves into the Twenty-first Century. The
Monitoring Committee of the Commission on the Future of the North Carolina
Community College System shall serve as an independent body to monitor and
review the issues. The State Board and the Monitoring Committee, as part
of the review under this act, shall:

(1) Thoroughly examine the
mission and structure of the community college system based upon a regional
review of program needs in order to facilitate the most efficient use of system
resources. This examination shall include:

a. Defining
enlarged service areas for community colleges based upon the needs of the
respective service areas,

b. Evaluating
the need to consolidate, eliminate, or modify the status of existing community
colleges and multicampus and off-campus centers,

c. Assessing
the distribution of physical facilities, programs, and resources in regions for
the purpose of eliminating competition among the community colleges for
students in overlapping service areas,

d. Identifying
any unproductive, low-quality, unnecessary, or duplicative programs, and

(2) Assess the manner in
which the community college system can most effectively meet the current and
future needs of business and industry and the adult population of North Carolina.

(3) Develop a regional
program structure to facilitate effective program planning, efficient use of
resources, the implementation of statewide curriculum standards, and
consolidated high-quality programs. The regional structure shall be the unit
used for the purposes of comprehensive planning and budgeting in the community
college system. The criteria used to determine the manner in which the
community college system shall be restructured into newly defined regions may
include, in addition to other appropriate criteria, the following:

a. Location of
the nearest college, campus, or off-campus center;

b. New or
anticipated population to be served;

c. Existing
and proposed transportation corridors and facilities;

d. Programs
proposed compared to the location of the nearest similar program;

e. Feasibility
of delivering programs using technology;

f. Use
and availability of facilities of local school systems;

g. Potential
impact on enrollment of nearby institutions; and

h.
Geographical redistribution of college transfer programs.

(4) Establish guidelines
for multicampus colleges and off-campus centers that recognize the availability
of technology and transportation, that locate any new facilities to minimize
the impact on existing colleges, campuses, and centers, and that apply regional
program-sharing principles. There shall be no new colleges, multicampus
colleges, or off-campus centers established within the North Carolina Community
College System until the State Board adopts these guidelines, at which time the
moratorium shall be lifted.

(5) Develop a
program-based funding system, including a full-time equivalency component and
specific goal performance components, in order to encourage the community
colleges to meet particular State needs or goals. The State Board of
Community Colleges may propose an initial set of goals.

(6) Establish standards
for the periodic review of community college programs including standards for
the termination of programs.

(7) Develop an
articulation policy that assures students taught at any institution under the
jurisdiction of the State Board of Education, the State Board of Community
Colleges, or the Board of Governors of The University of North Carolina may
transfer credit to other institutions within these systems in order to
eliminate the necessity of repetition of instruction in the same areas so that
costs to the student and to the State are minimized.

(8) Design, within the
community college system, Programs for Excellence, which shall be world-class
model programs in each curriculum program area, to be implemented throughout
the community college system at each of the institutions authorized to offer
each program. These Programs shall include model curricula, establish
curriculum standards, and update curricula in response to changes in
technologies and market conditions.

(9) Study any additional
issue the State Board of Community Colleges or the Monitoring Committee
considers appropriate.

(b) The State Board of
Community Colleges shall make interim reports to the Joint Legislative
Education Oversight Committee no later than April 15, 1994, and no later than
January 15, 1995. Thereafter, the State Board shall make annual reports
to the Joint Legislative Education Oversight Committee by January 15 of each
year until the Monitoring Committee terminates, at which time the State Board
shall make a final report.

(c) This section shall
remain in effect until terminated by the General Assembly.

Sec. 120. COMMUNITY COLLEGE SCHOLARSHIPS.

(a) The Department of
Community Colleges shall develop a plan to establish a Community College System
Challenge Grant Scholarship Fund. The plan shall be presented to the 1994
Regular Session of the 1993 General Assembly. The plan shall address
initial funding (method and amounts) as well as matching contributions from
non-State contributions.

(b) It is the goal of the
General Assembly that the Challenge Grant Scholarship Fund be developed for the
benefit of students with demonstrated financial need in the North Carolina
Community College System.

(c) The State Board of
Community Colleges shall administer the Challenge Grant Scholarship Fund as a
means for augmenting rapidly the principal in the Fund so that the State Board
will gain greater resources from which to award aid to a larger number of needy
students.

(d) This section is
effective upon ratification.

Requested by: Representatives Black, Rogers, Brawley,
Senator Ward

PRORATION OF FTE
REIMBURSEMENTS/MINIMUM CLASS SIZE STUDY

Sec. 124. (a) The State Board of Community Colleges
shall develop a plan for the proration of FTE reimbursements between two
community colleges when (i) both are operating a joint program or (ii) one is
operating a program on the other's campus.

(b) This proration plan
shall be based on the respective costs of each of the community colleges
associated with the following:

(1) Recruitment of
students;

(2) Provision of classroom
space;

(3) Development of course
materials;

(4) Administrative and
support costs; and

(5) Instructional costs.

(c) The State Board of
Community Colleges shall study the issue of establishing minimum class sizes
for community college classes.

(d) The State Board of
Community Colleges shall report on the proration plan developed pursuant to
subsections (a) and (b) of this section and on the results of its minimum class
size study pursuant to subsection (c) of this section to the 1993 General
Assembly, Regular Session 1994, by May 1, 1994.

Requested by: Senator Ward, Representatives Black, Rogers

ASSISTANCE TO HOSPITAL
NURSING/FUND DISTRIBUTION

Sec. 124.1. Funds appropriated in this act to the
Department of Community Colleges to provide financial assistance to hospital
programs of nursing education leading to diplomas in nursing that are fully
accredited by the North Carolina Board of Nursing and operated under the
authority of a public or nonprofit hospital licensed by the North Carolina
Medical Care Commission shall be distributed, upon application for financial
assistance, for each full-time student duly enrolled in the program as of
December 1, 1992, and on condition that accreditation is maintained. The
amount per student shall not exceed eight hundred fifty dollars
($850.00). The State Board of Community Colleges shall adopt rules to
ensure that this financial assistance is used directly for faculty and instructional
needs of diploma nursing programs.

FRESHMAN PERFORMANCE REPORTS MADE
AVAILABLE TO PARENTS OF HIGH SCHOOL STUDENTS

Sec. 125. G.S. 115C-12(18)c. reads as rewritten:

"c. The State
Board of Education shall comply with the provisions of G.S. 116-11(10a) to plan
and implement an exchange of information between the public schools and the
institutions of higher education in the State. The State Board of
Education shall require local boards of education to provide to the parents of
children at a school all information except for confidential information
received about that school from institutions of higher education pursuant to
G.S. 116-11(10a) and to make that information available to the general public."

Sec. 126. The State Board of Education shall
require the local school administrative units receiving career development
funds to modify their differentiated pay plans for the 1994-95 fiscal year so
that the cost of the differentiated pay plan equals (i) five percent (5%) of
teacher and administrator salaries and of the employer's contributions for
social security and retirement, for the prior fiscal year, and (ii) the amount
of local funds available for differentiated pay.

It is the intent of the General Assembly that this reduction
in appropriations not result in employees receiving less on a monthly basis in
salary and State-funded bonuses during the 1994-95 fiscal year than they
received on a monthly basis during the 1993-94 fiscal year so long as the
employees qualify for bonuses under the local differentiated pay plan.

Sec. 127. (a) The Director of the Budget may
transfer from the Reserve for Salary Increases for the 1993-94 fiscal year
funds necessary to implement the teacher salary schedule set out in subsection
(b) of this section, including funds for the employer's retirement and social
security contributions and funds for annual longevity payments at one percent
(1%) of base salary for 10 to 14 years of State service, one and one-half
percent (1.5%) of base salary for 15 to 19 years of State service, two percent
(2%) of base salary for 20 to 24 years of State service, and two and one-half
percent (2.5%) of base salary for 25 years of State service, commencing July 1,
1993, for all teachers whose salaries are supported from the State's General
Fund. These funds shall be allocated to individuals according to rules
adopted by the State Board of Education and the Superintendent of Public
Instruction. The longevity payment shall be paid in a lump sum once a year.

(b)(1) Beginning July 1, 1993, the following monthly
salary schedule shall apply to certified personnel of the public schools who
are classified as "A" teachers. The schedule contains 30 steps
with each step corresponding to one year of teaching experience.

Years
of
1993-94

ExperienceSalary

00
$2,002

01
2,042

02
2,083

03
2,125

04
2,168

05
2,211

06
2,255

07
2,300

08
2,346

09
2,393

10
2,441

11
2,490

12
2,540

13
2,591

14
2,643

15
2,696

16
2,750

17
2,805

18
2,861

19
2,918

20
2,976

21
3,036

22
3,097

23
3,159

24
3,222

25
3,286

26
3,352

27
3,419

28
3,487

29+
3,557

(2) Beginning July 1,
1993, the following monthly salary schedule shall apply to certified personnel
of the public schools who are classified as "G" teachers. The
schedule contains 30 steps with each step corresponding to one year of teaching
experience.

Years
of
1993-94

ExperienceSalary

00
$2,127

01
2,170

02
2,213

03
2,257

04
2,302

05
2,348

06
2,395

07
2,443

08
2,492

09
2,542

10
2,593

11
2,645

12
2,698

13
2,752

14
2,807

15
2,863

16
2,920

17
2,978

18
3,038

19
3,099

20
3,161

21
3,224

22
3,288

23
3,354

24
3,421

25
3,489

26
3,559

27
3,630

28
3,703

29+
3,777

(3) Beginning July 1,
1993, certified public school teachers with certification based on academic
preparation at the six-year degree level shall receive a salary supplement of
one hundred twenty-six dollars ($126.00) per month in addition to the
compensation provided for certified personnel of the public schools who are
classified as "G" teachers. This is in lieu of the separate
salary schedule adopted by the General Assembly for these employees in Section
72 of Chapter 900 of the 1991 Session Laws.

(4) Beginning July 1,
1993, certified public school teachers with certification based on academic
preparation at the doctoral degree level shall receive a salary supplement of
two hundred fifty-three dollars ($253.00) per month in addition to the
compensation provided for certified personnel of the public schools who are
classified as "G" teachers. This is in lieu of the separate
salary schedule adopted by the General Assembly for these employees in Section
72 of Chapter 900 of the 1991 Session Laws.

(c) The salary schedules
set out in this section shall apply to all public school teachers within the
State and no teacher in any local school administrative unit shall be entitled
to a State salary or a State salary and bonus, except as provided in a local
differentiated pay plan, in excess of the amount set out in this section.

(d) The first step of the
salary schedule for school psychologists shall be equivalent to Step 5,
corresponding to five years of experience, on the salary schedule established
in this section for certified personnel of the public schools who are
classified as "G" teachers. Certified psychologists shall be
placed on the salary schedule at an appropriate step based on their years of
experience. Certified psychologists shall receive longevity payments based
on years of State service in the same manner as teachers.

Sec. 128. Part 1 of Article 24C of Chapter 115C of
the General Statutes is repealed.

Requested by: Senator Ward, Representatives Black, Rogers,
Kuczmarski

ALLOCATION OF FUNDS FOR MERGED
CAREER LADDER PILOT PROJECTS

Sec. 129. (a) Any differentiated pay plan for a
local school administrative unit in a school unit that resulted from a merger
of a school unit that was a career development pilot project and a school unit
that was not a career development pilot project shall receive (i) the amount of
funds that was previously allocated to the particular pilot project by the
State Board of Education and (ii) the amount of funds the unit is entitled to
receive to administer the School Accountability Act of 1989 pursuant to this
act for the portion of the merged unit that did not participate in the pilot
project.

(b) The differentiated
pay plan for a local school administrative unit that resulted from a merger
subsequent to June 30, 1993, of a school unit that was a career development
pilot project and a school unit that was not a career development pilot project
may be modified by the local school board, upon the recommendation of the State
Superintendent of Public Instruction and with the approval of the State Board
of Education.

Sec. 130. Notwithstanding G.S. 143-23 or any other
provision of law, the Superintendent of Public Instruction shall reorganize the
Department of Public Instruction to implement a seven hundred sixty-three
thousand three hundred sixty-six dollar ($763,366) base budget reduction for
the 1993-94 fiscal year and a one million seven hundred eighty-one thousand
seven hundred sixteen dollar ($1,781,716) base budget reduction for the 1994-95
fiscal year. As a result of the reorganization, 57 positions funded from
the General Fund shall be abolished during the 1993-95 fiscal biennium.

The Department shall report to the Joint Legislative
Education Oversight Committee on the positions funded from the General Fund and
from other sources that are eliminated during each year of the 1993-95 fiscal
biennium.

Sec. 131. Section 72(a) of Chapter 752 of the 1989
Session Laws, as rewritten by Section 56(c) of Chapter 900 of the 1991 Session
Laws, reads as rewritten:

"(a) There is established
a model teacher education consortium for the following local school
administrative units: Bertie, Gates County, Granville County,
Halifax County, Hertford County, Northampton County, Vance County, Warren
County, Roanoke Rapids City, and Weldon City, with the collaboration of East
Carolina University, Elizabeth City State University, Barton College, North Carolina
Wesleyan College, Halifax Community College, and Vance-Granville Community
College."

Sec. 132. (a) Funds appropriated to the Reserve for
Salary Increases shall be used to begin implementation of a new salary schedule
for school-based administrators as provided in this act. These funds
shall be used for State-paid employees only.

(b) The salary schedule
for school-based administrators shall apply only to principals and assistant
principals. The salary schedule for the 1993-94 fiscal year is as
follows:

1
1
2
3
4
5
6
7

Asst.

Step
Prin. Prin.I
Prin.II Prin.III
Prin.IV Prin.V
Prin.VI Prin.VII

0
- -
-
-
-
-
-
-

1
- -
-
-
-
-
-
-

2
- -
-
-
-
-
-
-

3
- -
-
-
-
-
-
-

4
$2,371 -
-
-
-
-
-
-

5
2,418 -
-
-
-
-
-
-

6
2,466 -
-
-
-
-
-
-

7
2,515 -
-
-
-
-
-
-

8
2,565 $2,565 -
-
-
-
-
-

9
2,616 2,616 -
-
-
-
-
-

10
2,668 2,668
$2,721 -
-
-
-
-

11
2,721 2,721
2,775 -
-
-
-
-

12
2,775 2,775 2,831
$2,888 -
-
-
-

13
2,831 2,831 2,888
2,946
$3,005 -
-
-

14
2,888 2,888 2,946
3,005 3,065
$3,126 -
-

15
2,946 2,946 3,005
3,065
3,126
3,189 -
-

16
3,005 3,005 3,065
3,126
3,189 3,253
$3,318
-

17
3,065 3,065 3,126 3,189
3,253
3,318
3,384 $3,452

18
3,126 3,126 3,189
3,253
3,318 3,384
3,452 3,521

19
3,189 3,189 3,253
3,318
3,384 3,452
3,521 3,591

20
3,253 3,253 3,318
3,384
3,452 3,521
3,591 3,663

21
3,318 3,318 3,384
3,452
3,521 3,591
3,663 3,736

22
3,384 3,384 3,452 3,521
3,591
3,663
3,736 3,811

23
3,452 3,452 3,521
3,591
3,663 3,736
3,811 3,887

24
3,521 3,521 3,591
3,663
3,736 3,811
3,887 3,965

25
3,591 3,591 3,663
3,736
3,811 3,887
3,965 4,044

26
3,663 3,663 3,736
3,811
3,887 3,965
4,044 4,125

27
3,736 3,736 3,811
3,887
3,965
4,044
4,125 4,208

28
3,811 3,811 3,887
3,965
4,044 4,125
4,208 4,292

29
3,887 3,887 3,965
4,044
4,125 4,208
4,292 4,378

30
3,965 3,965 4,044
4,125
4,208 4,292
4,378 4,466

31
4,044 4,044 4,125
4,208
4,292 4,378
4,466 4,555

32
- 4,125 4,208
4,292
4,378
4,466
4,555 4,646

33
- -
4,292
4,378
4,466
4,555
4,646 4,739

34
- -
4,378
4,466
4,555
4,646
4,739 4,834

35
- -
-
4,555
4,646
4,739
4,834 4,931

36
- -
-
4,646
4,739
4,834
4,931 5,030

37
- -
-
-
4,834
4,931
5,030 5,131

38
- -
-
-
-
5,030
5,131 5,234

39
- -
-
-
-
-
5,234 5,339

40
- -
-
-
-
-
5,339 5,446

41
- -
-
-
-
-
-
5,555.

Provided, however, this salary
schedule sets the entry level salary of an assistant principal three percent
(3%) higher than the salary of a teacher with a "G" certificate with
four years of experience, and it contains an approximate two percent (2%)
increase between each step. If the salary schedule for teachers with
"G" certificates is modified for subsequent fiscal years, the State
Board of Education shall modify this salary schedule accordingly.

(c) The appropriate
classification for placement of principals and assistant principals on the
salary schedule shall be determined in accordance with the following schedule:

Number of Teachers

Grade
Classification
Supervised

1
Assistant Principal

Principal
I
Less than 11 Teachers

2
Principal
II
11-21 Teachers

3
Principal
III
22-32 Teachers

4
Principal
IV
33-43 Teachers

5
Principal
V
44-54 Teachers

6
Principal
VI
55-65 Teachers

7
Principal
VII
More than 65 Teachers.

The number of teachers supervised
includes teachers and assistant principals paid from State funds only; it does
not include teachers or assistant principals paid from non-State funds or the
principal or teacher assistants.

(d) An assistant
principal shall be placed on the step on the salary schedule that reflects
total years of experience as a certificated employee of the public schools.

A principal shall be placed on the step on the salary
schedule that reflects total number of years of experience as a certificated
employee of the public schools and an additional step for every three years of
experience as a principal.

(e) Notwithstanding any
other provision of this section, the certified base salary of a principal or
assistant principal shall not increase less than one percent (1%) or more than
three percent (3%) as a result of placement on the salary schedule in
accordance with this section. If placement on a grade and step of the
salary schedule in accordance with this section would result in a principal or
assistant principal receiving a salary increase of from one percent (1%) to
three percent (3%), the principal or assistant principal shall be placed on a
grade and step of the salary schedule in accordance with this section. If
placement on a grade and step of the salary schedule in accordance with this
section would result in a principal or assistant principal receiving a salary
increase of less than one percent (1%), the principal or assistant principal
shall be placed on the lowest grade and step with a salary that is at least a
one percent (1%) salary increase for the principal or assistant
principal. If placement on a grade and step of the salary schedule in
accordance with this section would result in a principal or assistant principal
receiving a salary increase of more than three percent (3%), the principal or
assistant principal shall be placed on the lowest grade and step with a salary
that is at least a three percent (3%) salary increase for the principal or
assistant principal.

(f) Principals and
assistant principals with certification based on academic preparation at the
six-year degree level shall be paid an additional one hundred twenty-six
dollars ($126.00) per month. Principals and assistant principals with
certification based on academic preparation at the doctoral degree level shall
be paid an additional two hundred fifty-three dollars ($253.00) per month.

(g)
(1) There shall be no State requirement
that superintendents in each local school unit shall receive in State-paid
salary at least one percent (1%) more than the highest paid principal receives
in State salary in that school unit: Provided, however, the additional
State-paid salary a superintendent who was employed by a local school
administrative unit for the 1992-93 fiscal year received because of that
requirement shall not be reduced because of this subsection for subsequent
fiscal years that the superintendent is employed by that local school
administrative unit so long as the superintendent is entitled to at least that
amount of additional State-paid salary under the rules in effect for the
1992-93 fiscal year.

(2) Section 19.1(g) of
Chapter 1137 of the 1979 Session Laws, as rewritten by Section 97 of Chapter
1086 of the 1987 Session Laws, is repealed.

(h) Longevity pay for
principals and assistant principals shall be as provided for State employees.

(i)
(1) If a principal is reassigned to a
higher job classification because the principal is transferred to a school
within a local school administrative unit with a larger number of
State-allotted teachers, the principal shall be placed on the salary schedule
as if the principal had served the principal's entire career as a principal at
the higher job classification.

(2) If a principal is
reassigned to a lower job classification because the principal is transferred
to a school within a local school administrative unit with a smaller number of
State-allotted teachers, the principal shall be placed on the salary schedule
as if the principal had served the principal's entire career as a principal at
the lower job classification.

This subdivision applies to all
transfers on or after the ratification date of this act, except transfers in
school systems that have been created, or will be created, by merging two or
more school systems. Transfers in these merged systems are exempt from
the provisions of this subdivision for one calendar year following the date of
the merger.

(j) The State Board
of Education shall adopt rules for placing principals and assistant principals
who have experience in other states on the salary schedule.

Principals and assistant principals who are initially
employed in a public school in North Carolina shall be placed on the
"G" teacher salary schedule in accordance with their total experience
in education and then given a percentage increase for assignment to the
specific school-based administrator classification. The percentage
increase shall be computed as follows:

"G" teacher salary + 4% for assignment to
Assistant Principal

4% for assignment to Principal I

6% for assignment to Principal II

8% for assignment to Principal III

10% for assignment to Principal IV

12% for assignment to Principal V

14% for assignment to Principal VI

16% for assignment to Principal VII.

(k) The Joint Legislative
Education Oversight Committee may consider the current salary schedules for school
administrators other than principals and assistant principals and may recommend
any needed changes to those salary schedules.

a. Support
personnel refers to all public school employees who are not required by statute
or regulation to be certified in order to be employed. The State Board of
Education is authorized and empowered to adopt all necessary rules for full
implementation of all schedules to the extent that State funds are made
available for support personnel.

b. Salary
schedules for the following public school support personnel shall be adopted by
the State Board of Education: school finance officer, office support personnel,
property and cost clerks, teacher assistants, maintenance supervisors,
custodial personnel, and transportation personnel. The Board shall classify
these support positions in terms of uniform pay grades included in the salary
schedule of the State Personnel Commission.

Prior to the 1995-96 school year,
local boards of education shall place State-allotted office support personnel,
teacher assistants, and custodial personnel on the salary schedule adopted by
the State Board of Education so that the average salary paid is the
State-allotted amount for the category. In placing employees on the
salary schedule, the local board shall consider the education, training, and
experience of each employee. It is the intent of the General Assembly
that a local school administrative unit not fail to employ an employee who was
employed for the prior school year in order to implement the provisions of this
sub-subdivision. The Department of Public Instruction shall provide
technical assistance to local school administrative units regarding the
implementation of this sub-subdivision.

The average salary paid to employees
in each category from State-allotted funds for the 1993-94 school year shall be
at least two percent (2%) higher than the average salary paid to employees in
that category from State-allotted funds for the 1992-93 school year.

The State Board of Education
shall report to the General Assembly, prior to March 31, 1994, and March 31,
1995, on the implementation of this sub-subdivision.

c. Salary
schedules for other support personnel, including but not limited to maintenance
and school food service personnel, shall be adopted by the State Board of
Education. The Board shall classify these support positions in terms of uniform
pay grades included in the salary schedule of the State Personnel Commission.
These schedules shall apply if the local board of education does not adopt a
salary schedule of its own for personnel paid from other than State
appropriations."

(b) G.S. 115C-238.6(a)
reads as rewritten:

"(a) Prior to June 30 each
year, the State Superintendent shall review local school improvement plans
submitted by the local school administrative units in accordance with policies
and performance indicators adopted by the State Board of Education. If the
State Superintendent approves the plan for a local school administrative unit,
that unit shall participate in the Program for the next fiscal year.

If a local plan contains a request for a waiver of State
laws, regulations, or policies, in accordance with G.S. 115C-238.3(b1) or (b2),
the State Superintendent shall determine whether and to what extent the
identified laws, regulations, or policies should be waived. The State
Superintendent shall present that plan and his determination to the State Board
of Education. If the State Board of Education deems it necessary to do so to
enable a local unit to reach its local accountability goals, the State Board,
only upon the recommendation of the State Superintendent, may grant waivers of:

(1) State laws pertaining
to class size, teacher certification, assignment of teacher assistants, the use
of State-adopted textbooks, and the purposes for which State funds for the
public schools, except for funds for school health coordinators, may be used:
Provided, however, the State Board of Education shall not permit the use of
funds for teachers for expanded programs under the Basic Education Program for
any other purpose;

(2) All State regulations
and policies, except those pertaining to State salary schedules and employee
benefits for school employees, the instructional program that must be offered
under the Basic Education Program, the system of employment for public school
teachers and administrators set out in G.S. 115C-325, health and safety codes,
compulsory school attendance, the minimum lengths of the school day and year,
and the Uniform Education Reporting System.

The provisions of G.S. 115C-12(16)b. regarding the
placement of State-allotted office support personnel, teacher assistants, and
custodial personnel on the salary schedule adopted by the State Board shall not
be waived.

Except for waivers requested by the local board in accordance
with G.S.
115C-238.3(b2) for
central office staff, waivers shall be granted only for the specific schools
for which they are requested in building-level plans and shall be used only
under the specific circumstances for which they are requested."

Sec. 134. (a) The funds appropriated for exceptional children
in this act shall be allocated as follows:

(1) Each local school
administrative unit shall receive for academically gifted children the sum of
$641.26 per child for three and nine-tenths percent (3.9%) of the 1992-93
actual average daily membership in the local school administrative unit,
regardless of the number of children identified as academically gifted in the
local school administrative unit. The total number of children for which funds
shall be allocated pursuant to this subdivision is 43,114 for the 1993-94
school year.

(2) Each local school
administrative unit shall receive for exceptional children other than
academically gifted children the sum of $1,923.79 per child for the lesser of
(i) all children who are identified as exceptional children other than
academically gifted children or (ii) twelve and five-tenths percent (12.5)% of
the 1992-93 actual average daily membership in the local school administrative
unit. The maximum number of children for which funds shall be allocated
pursuant to this subdivision is 125,316 for the 1993-94 school year.

(3) Each local school
administrative unit in which more than twelve and five-tenths percent (12.5%)
of the 1992-93 actual average daily membership are identified as exceptional children
other than academically gifted children shall receive $418.76 per child in
excess of the twelve and five-tenths percent (12.5%). These funds shall
be used only for nonrecurring expenditures and other expenditures for
exceptional children other than academically gifted children that do not impose
future obligations on the State or local governments.

The dollar amounts allocated under
subdivisions (1) and (2) of this subsection for exceptional children shall also
increase in accordance with legislative salary increments for personnel who
serve exceptional children.

(b) The State Board of
Education shall study the methods of identifying exceptional children other
than academically gifted children and formulas for allocating funds for
exceptional children other than academically gifted children, including pupil
formulas that approximate the actual costs of providing services. The formulas
may include factors such as the severity of exceptionality, wealth of the local
educational agency, and any other factor the State Board of Education considers
appropriate. The State Board of Education shall ensure that the formulas do not
encourage local educational agencies as defined in G.S. 115C-110 to
overidentify exceptional children, to categorize children as more severely
impaired than they are, or to serve children in more restrictive settings than
are needed. The State Board of Education shall determine the impact on current
funding levels by running simulations of any formulas that it considers, and
shall recommend a five-year timeline beginning with the 1995-96 fiscal year for
implementation of the formulas, which may include the elimination of caps in
allocating exceptional children's funds at the end of the five years.

(c) The State Board of
Education shall reexamine the State's laws, rules, and policies concerning the
education of academically gifted children. As part of this review, the
Board shall (i) determine whether there should be State criteria for the
identification of these children, (ii) determine whether local school
administrative units should be required to count academically gifted children
as part of their annual head counts for exceptional children, (iii) identify,
and establish performance criteria to measure the success of, appropriate
programs or other uses of the funds for academically gifted children under
subsection (a) of this section, and (iv) establish criteria to ensure that
academically gifted children are generally reflective of the population of
children enrolled in the State's public schools.

(d) The State Board of
Education shall report its recommendations, including any proposals for
modified laws, rules, or policies and findings under subsections (b) and (c) of
this section to the Commission on Children with Special Needs and to the chairs
of the appropriations committees and the appropriations subcommittees on
education of the Senate and the House of Representatives by March 15, 1994.

Sec. 134.1. Funds in the amount of ten million
dollars ($10,000,000) for the 1993-94 fiscal year and ten million dollars
($10,000,000) for the 1994-95 fiscal year are appropriated for instructional
support personnel. It is the intent of the General Assembly that these
funds be used first for counselors, then for social workers and other
instructional support personnel to help reduce violence in public schools.

Sec. 135. (a) Article 8 of Chapter 115C of the General
Statutes is amended by adding a new Part to read:

"Part 3A. School Technology.

"§ 115C-102.5.
Commission on School Technology created; membership.

(a)There is
created the Commission on School Technology. The Commission shall be
located administratively in the Department of Public Education but shall
exercise all its prescribed statutory powers independently of the State Board
of Education and the Department of Public Instruction.

(b)The
Commission shall consist of the following 16 members:

(1)The State
Superintendent of Public Instruction or a designee;

(2)One
representative of The University of North Carolina, appointed by the President
of The University of North Carolina;

(3)One
representative of the North Carolina Community College System, appointed by the
President of the North Carolina Community College System;

(4)The Deputy
Controller for the Information Resources Management Commission in the Office of
the State Controller;

(5)Four members
appointed by the Governor;

(6)Four members
appointed by the General Assembly upon the recommendation of the President Pro
Tempore of the Senate in accordance with G.S. 120-121, one of whom shall be
recommended by the President of the Senate to serve as cochair; and

(7)Four members
appointed by the General Assembly upon the recommendation of the Speaker of the
House of Representatives in accordance with G.S. 120-121, one of whom shall be
recommended by the Speaker of the House of Representatives to serve as cochair.

In appointing members pursuant to
subdivisions (5), (6), and (7) of this subsection, the appointing entities
shall select individuals with technical or applied knowledge or experience in
learning and instructional management technologies or individuals with
expertise in curriculum or instruction who have successfully used learning and
instructional management technologies.

No producers, vendors, or consultants to producers or
vendors of learning or instructional management technologies shall serve on the
Commission.

Members shall serve for two-year terms. Vacancies in terms
of members appointed by the Governor shall be filled by the appointing officer.
Vacancies in terms of members appointed by the General Assembly shall be filled
in accordance with G.S. 120-122. Persons appointed to fill vacancies
shall qualify in the same manner as persons appointed for full terms.

(c)Notwithstanding
G.S. 120-123 and subsection (b) of this section, for the 1993-94 fiscal year
only, the Commission shall also include one member of the Senate appointed by
the President Pro Tempore of the Senate and one member of the House of
Representatives appointed by the Speaker of the House of Representatives.
These members shall be voting members.

(d)Members of
the Commission who are also members of the General Assembly shall be paid
subsistence and travel expenses at the rate set forth in G.S. 120-3.1.
Members of the Commission who are officials or employees of the State shall
receive travel allowances at the rate set forth in G.S. 138-6. All other
members of the Commission shall be paid the per diem and allowances set forth
in G.S. 138-5.

(e)The
Department of Public Instruction, the Department of Community Colleges, and the
Office of the State Controller shall provide requested professional and
clerical staff to the Commission. The Commission may also employ
professional and clerical staff and may hire outside consultants to assist it
in its work. The Commission shall use an outside consultant to perform a
requirements analysis for learning and instructional management technologies on
a statewide basis that is based on information gathered from each local school
administrative unit and that considers the needs of teachers, students, and
administrators.

"§
115C-102.6. Duties.

The Commission shall prepare a requirements analysis and propose
a plan to the Joint Legislative Commission on Governmental Operations and the
Joint Legislative Education Oversight Committee for improving student
performance in the public schools through the use of learning and instructional
management technologies. In developing this plan, the Commission shall:

(1)Assess
factors related to the current use of learning and instructional management
technologies in the schools, including what is currently being used, how the
current use of technology relates to the standard course of study, how the
effectiveness of learning and instructional management technologies is being
evaluated, how schools are paying for learning and instructional management
technologies, and what training school employees have received in the use of
learning and instructional management technology and networks.

(2)Identify the
instructional goals that can be met through the use of learning and
instructional management technologies. The goals may include teaching the
standard course of study, reaching students with a broad range of abilities,
and ensuring that all students have access to a complete curriculum regardless
of the geographical location or the financial resources of the school.

(3)Examine the
types of learning and instructional management technologies available to meet
the identified instructional goals, including computers, audiovisual aids,
science laboratory equipment, vocational education equipment, and distance
learning networks. The Commission shall consider the compatibility and
accessibility of different types of learning and instructional management
technologies, including compatibility with the planned statewide broadband ISDN
network, and whether they may be easily communicated from one site to another.
The Commission shall also consider linkages between learning and instructional
management technologies and existing State and local administrative systems.

(4)Develop a
basic level of learning and instructional management technology for every school
in the State. The basic level may include:

a.A
computer lab with student stations or a specified number of student computer
stations in each classroom for the use of instructional software such as
computer-assisted instruction, integrated learning systems, instructional
management systems, and applications software such as word processing,
database, spreadsheet, and desktop publishing.

b.A
computer workstation in every classroom for teachers to use in preparation and
delivery of instruction and for administrative record keeping.

c.A
television monitor and video cassette-recorder in every classroom to take
advantage of open-air broadcast programs, satellite programs, and instructional
video tapes available from the library/media center.

d.Computer
workstations at each elementary and secondary school, housed in the
library/media center, for individual students to use for basic skills
instructional software.

e.A
telecommunications line, modem, and software in each school's library/media
center that will allow students and teachers access to external databases and
resources for research purposes.

f.The availability of telephones for teachers.

g.Initial
training for the principal and teachers from each school in the use of the new
technology.

(5)Consider
staffing required to operate the learning and instructional management
technologies and options for maintaining the equipment.

(6)Consider the
types of staff development necessary to maximize the benefits of learning and
instructional management technologies and determine the appropriate ways to
provide the necessary staff development.

(7)Develop a
cost analysis of any plans and proposals that it develops.

"§ 115C-102.7.
Reports.

(a)The
Commission shall make a progress report prior to March 15, 1994, and a final
report prior to May 15, 1994, on the plan it develops to the Joint
Legislative Commission on Governmental Operations and the Joint Legislative Education
Oversight Committee. The Joint Legislative Commission on Governmental
Operations and the Joint Legislative Education Oversight Committee may meet
jointly to consider the reports and they may appoint subcommittees to jointly
consider the reports.

(b)The
Commission shall provide notice of meetings, copies of minutes, and periodic
briefings to the chair of the Information Resources Management Commission and
the chair of the Technical Committee of the Information Resources Management
Commission.

"§
115C-102.8. Expenditure of additional funds provided by the General
Assembly.

Any funds that may be provided by the General Assembly for
the 1993-95 fiscal biennium for learning and instructional management
technology in addition to the funds provided in the Current Operations
Appropriations Act of 1993 shall be spent only in accordance with subsequent
legislation enacted by the General Assembly."

(b) G.S. 120-123 is
amended by adding a new subdivision to read:

"(60)The Commission on School Technology,
as established by G.S. 115C-102.5, except as provided in G.S. 115C-102.5(c)."

(c) Funds in the amount
of three hundred thousand dollars ($300,000) for the 1993-94 fiscal year are
appropriated to the Department of Public Instruction in this act to carry out
the work of the School Technology Commission.

Sec. 136. (a) If a local school administrative unit
is identified as a low performing school system or placed on warning status by
the State Board of Education in accordance with G.S. 115C-64.1, the Department
of Public Instruction may use up to one million two hundred thousand dollars
($1,200,000) of the funds appropriated for Aid to Local School Administrative
Units for each fiscal year to provide the local school administrative unit with
staff development activities and technical assistance to enable the unit to
improve student performance and decrease dropout rates.

The Department of Public Instruction shall not use these
funds for new employee positions.

(b) If a local school
administrative unit is identified as a low performing school system by the
State Board of Education in accordance with G.S. 115C-64.1, and that local school
administrative unit receives small school system supplemental funding,
low-wealth counties supplemental funding, or both, the local school
administrative unit shall use those funds to implement the plan for improving
student performance and decreasing dropout rates that it submitted to the State
Board of Education in accordance with G.S. 115C-64.2(a).

If a local school administrative unit is placed on warning
status by the State Board of Education, and that local school administrative
unit receives small school system supplemental funding, low-wealth counties
supplemental funding, or both, the local school administrative unit shall use
those funds to implement a locally developed plan for improving student
performance and decreasing dropout rates.

(c) The Board of
Governors of The University of North Carolina shall require the Offices of
School Services at the constituent institutions to provide in-kind technical
assistance worth at least six hundred thousand dollars ($600,000) for each
fiscal year through the Department of Public Instruction to local school
administrative units that are identified as low performing school systems or
placed on warning status by the State Board of Education in accordance with
G.S. 115C-64.1.

Sec. 137. The State Board of Education shall use
funds appropriated for the McSmiles pilot program to implement a pilot Mobile Classroom
Instructional Laboratory for Educational Success Program in the McDowell County
School Administrative Unit. These State funds shall be used for a teacher
and a teacher assistant for the pilot program. All other costs of the
pilot program shall be met with non-State funds.

The pilot program shall be a mobile preschool program for
unserved four-year-old children in the McDowell County School Administrative
Unit. The goal of the pilot program shall be to prevent school failure
through early identification of developmental needs and learning styles of
preschool children.

The McDowell County School Administrative Unit shall report
to the State Board of Education and to the General Assembly on the pilot
program prior to March 1, 1995.

SUPPLEMENTAL FUNDING IN LOW-WEALTH
COUNTIES/SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING

Sec. 138. (a) Funds for supplemental funding.
- The General Assembly finds that it is appropriate to provide supplemental
funds in low-wealth counties to allow those counties to enhance the
instructional program and student achievement; therefore, of the funds
appropriated to Aid to Local School Administrative Units, the sum of eighteen
million dollars ($18,000,000) for the 1993-94 fiscal year and the sum of
eighteen million dollars ($18,000,000) for the 1994-95 fiscal year shall be
used for supplemental funds for schools.

(b) Use of funds for
supplemental funding. - Local school administrative units shall use funds
received pursuant to this section only to provide instructional positions,
instructional support positions, teacher assistant positions, clerical
positions, instructional supplies and equipment, staff development, and
textbooks.

(c) Definitions. -
As used in this section:

(1) "Anticipated
county property tax revenue availability" means the county adjusted
property tax base multiplied by the effective State average tax rate.

(2) "Anticipated
total county revenue availability" means the sum of the

a. Anticipated
county property tax revenue availability,

b. Local sales
and use taxes received by the county that are levied under Chapter 1096 of the
1967 Session Laws or under Subchapter VIII of Chapter 105 of the General
Statutes,

c. Food stamp
exemption reimbursement received by the county under G.S. 105-164.44C,

d. Homestead
exemption reimbursement received by the county under G.S. 105-277.1A,

e. Inventory
tax reimbursement received by the county under G.S. 105-275.1 and G.S.
105-277A,

f.
Intangibles tax distribution and reimbursement received by the county under
G.S. 105-213 and G.S. 105-213.1, and

g. Fines and
forfeitures deposited in the county school fund,

for the most recent year for which
data are available.

(3) "Anticipated
total county revenue availability per student" means the anticipated total
county revenue availability for the county divided by the average daily
membership of the county.

(4) "Anticipated
State average revenue availability per student" means the sum of all
anticipated total county revenue availability divided by the average daily
membership for the State.

(5) "Average daily
membership" means average daily membership as defined in the North
Carolina Public Schools Allotment Policy Manual, adopted by the State Board of
Education. If a county contains only part of a local school
administrative unit, the average daily membership of that county includes all
students who reside within the county and attend that local school
administrative unit.

(6) "County adjusted
property tax base" shall be computed as follows:

a. Subtract
the present-use value of agricultural land, horticultural land, and forestland
in the county, as defined in G.S. 105-277.2, from the total assessed real
property valuation of the county,

b. Adjust the
resulting amount by multiplying by a weighted average of the three most recent
annual sales assessment ratio studies,

2. Value of
property of public service companies, determined in accordance with Article 23
of Chapter 105 of the General Statutes, and

3. Personal
property value,

for the county.

(7) "County adjusted
property tax base per square mile" means the county adjusted property tax
base divided by the number of square miles of land area in the county.

(8) "County wealth as
a percentage of State average wealth" shall be computed as follows:

a. Compute the
percentage that the county per capita income is of the State per capita income
and weight the resulting percentage by a factor of five-tenths,

b. Compute the
percentage that the anticipated total county revenue availability per student
is of the anticipated State average revenue availability per student and weight
the resulting percentage by a factor of four-tenths,

c. Compute the
percentage that the county adjusted property tax base per square mile is of the
State adjusted property tax base per square mile and weight the resulting
percentage by a factor of one-tenth,

d. Add the
three weighted percentages to derive the county wealth as a percentage of the
State average wealth.

(9) "Effective county
tax rate" means the actual county tax rate multiplied by a weighted
average of the three most recent annual sales assessment ratio studies.

(10) "Effective State average tax
rate" means the average of effective county tax rates for all counties.

(11) "Per capita income"
means the average for the most recent three years for which data are available
of the per capita income according to the most recent report of the United
States Department of Commerce, Bureau of Economic Analysis, including any
reported modifications for prior years as outlined in the most recent report.

(13) "State average current
expense appropriations per student" means the most recent State total of
county current expense appropriations to public schools, as reported by
counties in the annual county financial information report to the State
Treasurer, divided by the total State average daily membership.

(14) "State average adjusted
property tax base per square mile" means the sum of the county adjusted
property tax bases for all counties divided by the number of square miles of
land area in the State.

(15) "Weighted average of the
three most recent annual sales assessment ratio studies" means the
weighted average of the three most recent annual sales assessment ratio studies
in the most recent years for which county current expense appropriations and
adjusted property tax valuations are available. If real property in a
county has been revalued one year prior to the most recent sales assessment
ratio study, a weighted average of the two most recent sales assessment ratios
shall be used. If property has been revalued the year of the most recent
sales assessment ratio study, the sales assessment ratio for the year of
revaluation shall be used.

(d) Eligibility for
funds. - The State Board of Education shall allocate these funds to local
school administrative units located in whole or in part in counties in which
the county wealth as a percentage of the State average wealth is less than one
hundred percent (100%).

(e) Allocation of
funds. - Except as provided in subsection (g) of this section, the amount
received per average daily membership for a county shall be the difference
between the State average current expense appropriations per student and the
current expense appropriations per student that the county could provide given
the county's wealth and an average effort to fund public schools. (To
derive the current expense appropriations per student that the county could be
able to provide given the county's wealth and an average effort to fund public
schools, multiply the county wealth as a percentage of State average wealth by
the State average current expense appropriations per student.)

The funds for the local school administrative units located
in whole or in part in the county shall be allocated to each local school
administrative unit, located in whole or in part in the county, based on the
average daily membership of the county's students in the school units.

If the funds appropriated for supplemental funding are not
adequate to fund the formula fully, each local school administrative unit shall
receive a pro rata share of the funds appropriated for supplemental funding.

(f) Formula for
distribution of supplemental funding pursuant to this section only. - The
formula in this section is solely a basis for distribution of supplemental
funding for low-wealth counties and is not intended to reflect any measure of
the adequacy of the educational program or funding for public schools.
The formula is also not intended to reflect any commitment by the General
Assembly to appropriate any additional supplemental funds for low-wealth
counties.

(g) Minimum effort
required. - A county that (i) maintains an effective county tax rate that
is at least one hundred percent (100%) of the effective State average tax rate
in the most recent year for which data are available or (ii) maintains a county
appropriation per student to the school local current expense fund of at least
one hundred percent (100%) of the current expense appropriations per student to
the school local current expense fund that the county could provide given the
county's wealth and an average effort to fund public schools, shall receive
full funding under this section. A county that maintains a county
appropriation per student to the school local current expense fund of less than
one hundred percent (100%) of the current expense appropriations per student to
the school local current expense fund that the county could provide given the
county's wealth and an average effort to fund public schools shall receive
funding under this section at the same percentage that the county's
appropriation per student to the school local current expense fund is of the
current expense appropriations per student to the school local current expense
fund that the county could provide given the county's wealth and an average
effort to fund public schools.

(h) Nonsupplant
requirement. - A county in which a local school administrative unit receives
funds under this section shall use the funds to supplement and not supplant
existing State and local funding for public schools.

The Local Government Commission shall analyze the budgets and
the expenditures of school administrative units that receive funds under this
section in light of their budgets and expenditures for the previous year and
shall determine whether those funds were used to supplement and not supplant
State and local funding for public schools. The Local Government Commission
shall report the results of its study to the State Board of Education, to the
Joint Legislative Education Oversight Committee, and to the Appropriations
Committees of the Senate and the House of Representatives, prior to May 1,
1994, and May 1, 1995.

(i) Reports.
- Counties that receive funds under this section shall report to the State
Board of Education before March 1 each year on how they are using the funds for
the fiscal year. The State Board of Education shall report to the Joint
Legislative Education Oversight Committee prior to May 1, 1994, and May 1,
1995, on how the funds are being used.

(j) Department
of Revenue reports. - The Department of Revenue shall provide to the
Department of Public Instruction a preliminary report for the current fiscal
year of the assessed value of the property tax base for each county prior to
March 1 of each year and a final report prior to May 1 of each year. The
reports shall include for each county the annual sales assessment ratio and the
taxable values of (i) total real property, (ii) the portion of total real
property represented by the present-use value of agricultural land,
horticultural land, and forestland as defined in G.S. 105-277.2, (iii) property
of public service companies determined in accordance with Article 23 of Chapter
105 of the General Statutes, and (iv) personal property.

Sec. 138.1. (a) Funds for Small School Systems. -
The State Board of Education shall allocate funds appropriated for small school
system supplemental funding (i) to each county school administrative unit with
an average daily membership of less than 3,000 students and (ii) to each county
school administrative unit with an average daily membership of from 3,000 to
4,000 students if the county in which the local school administrative unit is
located has a county adjusted property tax base per student that is below the
State adjusted property tax base per student and if the total average daily
membership of all local school administrative units located within the county
is from 3,000 to 4,000 students. The allocation formula shall:

(1) Round all fractions of
positions to the next whole position.

(2) Provide four
additional regular classroom teachers in counties in which the average daily
membership per square mile is greater than four and six additional regular
classroom teachers in counties in which the average daily membership per square
mile is four or less.

(4) Change the duty-free
period allocation to one teacher assistant per 400 average daily membership.

(5) Provide a base for the
consolidated funds allotment of at least one hundred fifty thousand dollars
($150,000), excluding textbooks.

(6) Allot vocational
education funds for grade 6 as well as for grades 7-12.

If funds appropriated for each fiscal
year for small school system supplemental funding are not adequate to fund fully
the program, the State Board of Education shall reduce the amount allocated to
each county school administrative unit on a pro rata basis. This formula
is solely a basis for distribution of supplemental funding for certain county
school administrative units and is not intended to reflect any measure of the
adequacy of the educational program or funding for public schools. The
formula is also not intended to reflect any commitment by the General Assembly
to appropriate any additional supplemental funds for such county administrative
units.

(b) Nonsupplant
requirement. - A county in which a local school administrative unit
receives funds under this section shall use the funds to supplement and not
supplant existing State and local funding for public schools.

The Local Government Commission shall analyze the budgets and
the expenditures of school administrative units that receive funds under this
section in light of their budgets and expenditures for the previous year and
shall determine whether those funds were used to supplement and not supplant
State and local funding for public schools. The Local Government
Commission shall report the results of its study to the State Board of
Education, the Joint Legislative Oversight Committee, and the Appropriations
Committees of the Senate and the House of Representatives, prior to May 1, 1994
and May 1, 1995.

(c) Definitions. -
As used in this section:

(1) "Average daily
membership" means average daily membership as defined in the North
Carolina Public Schools Allotment Policy Manual, adopted by the State Board of
Education.

(2) "County adjusted
property tax base per student" means the total assessed property valuation
for each county, adjusted using a weighted average of the three most recent
annual sales assessment ratio studies, divided by the total number of students
in average daily membership who reside within the county.

(4) "State adjusted
property tax base per student" means the sum of all county adjusted
property tax bases divided by the total number of students in average daily
membership who reside within the State.

(5) "Weighted average
of the three most recent annual sales assessment ratio studies" means the
weighted average of the three most recent annual sales assessment ratio studies
in the most recent years for which county current expense appropriations and
adjusted property tax valuations are available. If real property in a
county has been revalued one year prior to the most recent sales assessment
ratio study, a weighted average of the two most recent sales assessment ratios
shall be used. If property has been revalued the year of the most recent
sales assessment ratio study, the sales assessment ratio for the year of
revaluation shall be used.

(d) Reports. -
Counties that receive funds under this section shall report to the State Board
of Education before March 1 each year on how they are using the funds for the
fiscal year. The State Board of Education shall report to the Joint
Legislative Education Oversight Committee prior to May 1, 1994, and May 1,
1995, on how the funds are being used.

Sec. 139. (a) Of the funds appropriated to Aid to Local
School Administrative Units, the sum of two million five hundred thousand
dollars ($2,500,000) for the 1993-94 fiscal year and the sum of two million
five hundred thousand dollars ($2,500,000) for the 1994-95 fiscal year shall be
used to provide grants for local school administrative units for locally
designed innovative local programs to make schools safe for students and school
employees. These funds shall be used for grants of from fifty thousand
dollars ($50,000) to one hundred thousand dollars ($100,000) per year to local
school administrative units. These funds may be used for continuing or
noncontinuing expenses.

A local school administrative unit may apply for a grant, or
two or three adjacent local school administrative units may apply jointly for a
grant. Applicants for grants shall submit to the State Board of Education an
application that includes the following information:

(1) An assessment of local
problems with regard to violence and harassment, including sexual and other
forms of harassment, in the schools prepared by a local task force of
educators, parents, students, community leaders, and representatives of social
services and law enforcement, appointed by the local board of education.

(2) A detailed plan for
addressing these local problems, including proposed goals and anticipated
outcomes, prepared after consultation with the task force.

(3) A statement of how the
grant funds would be used to address these local problems and what other
resources would be used to address the problems.

(4) A process for
assessing on an annual basis the success of the local plan for addressing
problems with regard to violence and harassment in the schools.

The Superintendent of Public Instruction shall appoint a
State task force to assist the Superintendent in reviewing grant
applications. The State task force shall include representatives of the
Department of Public Instruction, local school administrative units, educators,
parents, the juvenile justice system, social services, and nongovernmental
agencies providing services to children, and other members the Superintendent
deems appropriate. In reviewing grant applications, the Superintendent
and the State task force shall consider the severity of the local problems with
regard to violence in the schools and the likelihood that the locally designed
plan will deal with the problems successfully.

The State Board of Education shall consider the
recommendations of the Superintendent in selecting grant recipients. The
State Board shall also attempt to give grants to local school administrative
units that are located geographically throughout the State, that have different
demographic profiles, and that propose different approaches to their
problems. The State Board shall select grant recipients prior to January
1, 1994.

The Superintendent of Public Instruction shall administer the
grant program and provide technical assistance to grant applicants and
recipients.

The State Board of Education shall report to the Joint
Legislative Education Oversight Committee prior to March 15, 1994, and prior to
January 15, 1995, on how the funds are being used.

(b) G.S. 115C-12 is
amended by adding a new subdivision to read:

"(21)Duty to Monitor Acts of
School Violence. - The State Board of Education shall monitor and compile an
annual report on acts of violence in the public schools. The State Board
shall adopt standard definitions for acts of school violence and shall require
local boards of education to report them to the State Board in a standard
format adopted by the State Board."

(c) G.S. 115C-47 is
amended by adding a new subdivision to read:

"(36)To Report All Acts of School
Violence. - Local boards of education shall report all acts of school violence
to the State Board of Education in accordance with G.S. 115C-12(21)."

(d) G.S. 115C-81 is
amended by adding a new subsection to read:

"(a4)Conflict Resolution
and Mediation Models: The State Board of Education shall develop a list
of recommended conflict resolution and mediation materials, models, and
curricula that address responsible decision making, the causes and effects of
school violence and harassment, cultural diversity, and nonviolent methods for
resolving conflict, including peer mediation and shall make the list available
to local school administrative units and school buildings by the beginning of
the 1994-95 school year. In developing this list, the Board shall
emphasize materials, models, and curricula that currently are being used in
North Carolina and that the Board determines to be effective. The Board
shall include at least one model that includes instruction and guidance for the
voluntary implementation of peer mediation programs and one model that provides
instruction and guidance for teachers concerning the integration of conflict
resolution and mediation lessons into the existing classroom curriculum."

Sec. 140. The State Board of Education shall use
funds appropriated for the Parents as Teachers Pilot Programs to implement
pilot programs in the Rutherford County School Administrative Unit and the Wake
County School Administrative Unit, which have been designated as national
training sites for the program. The purpose of the program shall be to
send parent educators into the homes of children from birth to three years old
to provide the children's parents information and training to help the children
have the best possible start in life. These funds shall be used to provide
funds for direct services to children and their families in the Rutherford
County School Administrative Unit and the Wake County School Administrative
Unit.

The Rutherford County School Administrative Unit and the Wake
County School Administrative Unit shall report to the State Board of Education
and to the General Assembly on the pilot program prior to March 1, 1995.

Sec. 141. (a) There is created in the Department of
Public Instruction the Task Force on Teacher Staff Development. The
purpose of the Task Force shall be to develop a Teacher Academy Plan. The
Task Force shall consist of 20 members appointed as follows:

(1) The Superintendent of
Public Instruction or the Superintendent's designee, who shall serve as Chair;

(2) One member of the
State Board of Education appointed by the Chair of the State Board;

(3) One member of the Board
of Governors of The University of North Carolina appointed by the Chair of the
Board of Governors;

(4) The Director of the
North Carolina Center for the Advancement of Teaching;

(5) Two deans of Schools
of Education appointed by the President of The University of North Carolina;

(6) Four public school
teachers appointed by the Speaker of the House of Representatives, one of whom
teaches in preschool through grade 2, one of whom teaches in grades 3 through
5, one of whom teaches in grades 6 through 8, and one of whom teaches in grades
9 through 12;

(7) Four public school
teachers appointed by the President Pro Tempore of the Senate, one of whom
teaches in preschool through grade 2, one of whom teaches in grades 3 through
5, one of whom teaches in grades 6 through 8, and one of whom teaches in grades
9 through 12;

(7a) Two public school teachers
appointed by the Governor;

(8) One superintendent of
a local school administrative unit appointed by the Governor;

(9) Two public school
principals appointed by the Governor; and

(10) One member of the Teacher
Training Task Force appointed by the Chair of the State Board of Education.

(b) The Task Force shall
develop for consideration by the General Assembly a Teacher Academy Plan to
establish a statewide network of high quality, integrated, comprehensive,
collaborative, and sustained professional development for teachers in school
committee leadership and the core content areas. The plan shall integrate
fully the resources of the State and local units.

The plan shall address the following:

(1) Efficient and
effective use of existing State, federal, and local resources through an
integrated, nonduplicative delivery of professional development to teachers.

(2) Short-range and
long-range plans for school-based staff development that address the
professional development needs of teachers in site-based decision making, core
content areas, instruction, use of modern technology, and other appropriate
subjects.

(3) Effective use of the
North Carolina Center for Advancement of Teaching facility and staff in the
delivery of teacher professional development, especially in the training of
trainers and designing of training programs.

(4) Training schedules and
opportunities that minimize the time teachers are away from classroom
instruction, especially in the training of trainers.

(5) Development of
organizational arrangements and technologies that encourage teacher networking
and collaboration, and reduce the isolation of teachers.

(6) Use of teachers as
trainers and identification of candidates for training.

(7) Effective use of the
facilities and staff of The University of North Carolina and its campuses in
the delivery of professional development. Geographical access to program
activities should be considered with regard to the use of university and
community college facilities.

(8) Effective use of
existing and planned telecommunications and long-distance learning systems for teacher
staff development to limit expenditures for travel and associated costs.

(9) Professional
development that meets the unique needs of individual schools and that is
sensitive to internal and external pressures, including site-based decision making,
revisions to the Standard Course of Study, testing, technology, and other
important State initiatives.

(10) A proposal for the ongoing
coordination of the teacher professional development activities and needs of
local school administrative units, the Department of Public Instruction, The
University of North Carolina, NCCAT, private colleges and universities, and
teachers.

(11) A comprehensive needs assessment
based on local school-based committee surveys.

(12) A proposal for training an initial
cadre of teacher trainers and implementation of the first phase of training in
the summer of 1994.

The Task Force shall consider existing professional
development organizations and networks in the development of the Plan.
The Task Force shall also work in conjunction with the Teacher Training Task
Force in the development of the Plan.

(c) The Department of
Public Instruction shall provide professional and clerical services to the Task
Force. The Superintendent of Public Instruction, after consultation with the
Task Force, may also employ consultants. The Department of Public Instruction
shall also provide meeting rooms, telephones, office space, equipment, and
supplies to the Task Force.

(d) Task Force members
shall receive per diem, subsistence, and travel allowances in accordance with
G.S. 138-5, 138-6, or 120-3.1, as appropriate.

(e) The Task Force shall
report the Plan to the Joint Legislative Education Oversight Committee no later
than March 1, 1994.

(f) Funds are
appropriated in this act to the Department of Public Instruction in the amount
of three hundred thousand dollars ($300,000) for the 1993-94 fiscal year to
implement the provisions of this section. Of these funds, the sum of
fifteen thousand dollars ($15,000) for the 1993-94 fiscal year shall be used to
carry out the work of the Task Force on Teacher Staff Development and the sum
of two hundred eighty-five thousand dollars ($285,000) for the 1993-94 fiscal
year shall be used by the Department of Public Instruction to begin
implementation of Teacher Academies by developing training modules in
collaboration with NCCAT, training the initial cadre of teacher trainers in
collaboration with NCCAT, contracting with trainers, and selecting universities
or other facilities as sites for Teacher Academies for summer training in
1994. In carrying out its responsibilities under this subsection, the
Department of Public Instruction shall consider the work of the Task Force on
Teacher Staff Development.

(g) The Task Force on
Teacher Staff Development shall expire July 1, 1995.

Sec. 142. Funds in the amount of two hundred
thousand dollars ($200,000) for the 1993-94 fiscal year and two hundred
thousand dollars ($200,000) for the 1994-95 fiscal year that are appropriated
to the Board of Governors of The University of North Carolina Reserve for
University Operations shall be allocated to the North Carolina Center for the
Advancement of Teaching at Western Carolina University (NCCAT) to be used to
train teacher trainers, expand NCCAT services to areas that are not located
near the Center, and to conduct pilot programs at five local school
administrative units.

The purpose of the pilot programs shall be to help local
school administrative units develop professional development programs to solve
the needs that have been identified by school-based committees. The pilot
units shall be geographically and socioeconomically diverse and shall represent
both urban and rural areas and large and small average daily membership.

The NCCAT program shall conduct clinical research at the five
pilot units to evaluate the effectiveness at the unit, school building, and individual
level of the NCCAT program design on the implementation of staff development
plans.

Sec. 143. Of the funds appropriated to Aid for
Local School Administrative Units for staff development for teachers, the sum
of two million dollars ($2,000,000) for the 1993-94 fiscal year shall be used
to pay stipends to certified instructional personnel who participate in staff
development activities on days outside of the 200-day school calendar.
The stipend shall be for ten dollars ($10.00) per eligible hour, with a maximum
of sixty dollars ($60.00) per day. To qualify for the payment of the
stipend, the staff development activities shall be approved in advance by the
employee's principal or supervisor.

Requested by: Representative DeVane

SCOTLAND COUNTY SCHOOL PAY DATE
CHANGED

Sec. 143.1. Notwithstanding the provisions of G.S.
115C-302(a), G.S. 115C-316(a), or any other provision of law, all 10-month
employees of the Scotland County Schools except for school bus drivers, who are
paid on a monthly basis, shall be paid on the fifteenth day of each
month. Nothing in this section shall have the effect of changing the rate
of pay for any employee of Scotland County Schools.

This section shall not be construed to authorize prepayment
of any employees by the Scotland County Board of Education.

Requested by: Representative Redwine

BRUNSWICK COUNTY SCHOOL PAY DATE
CHANGED

Sec. 144. Notwithstanding the provisions of G.S.
115C-302(a), G.S. 115C-316(a), or any other provision of law, all 10-month
contract teachers and all 10-month employees of the Brunswick County Schools,
who are paid on a monthly basis, shall be paid on the fifteenth day of each
month. Nothing in this section shall have the effect of changing the rate
of pay for any employee of Brunswick County Schools.

This section shall not be construed to authorize prepayment
of any employees by the Brunswick County Board of Education.

STUDY OF GPAC RECOMMENDATIONS
REGARDING REORGANIZATIONS OF STATE EDUCATION AGENCIES

Sec. 144.1. The Joint Legislative Commission on
Governmental Operations may review the implementation of the recommendations of
the Government Performance Audit Committee regarding the reorganization of
State education agencies. The Commission may consider the extent to which
the recommendations of the Government Performance Audit Committee are being
implemented, and what additional actions, if any, should be taken to implement
these recommendations.

If the Joint Legislative Commission on Governmental
Operations undertakes this review, the Commission shall report the results of
the review to the General Assembly.

Requested by: Representatives Wright, Barnes, Senators Perdue,
Ward

LOCAL SCHOOL IMPROVEMENT PLANS

Sec. 144.2. (a) G.S. 115C-238.1 reads as rewritten:

"§
115C-238.1. Performance-based Accountability Program; development and
implementation by State Board.

The General Assembly believes that all children can learn. It
is the intent of the General Assembly that the mission of the public school
community is to challenge with high expectations each child to learn, to
achieve, and to fulfill his or her potential. With that mission as its guide,
the State Board of Education shall develop and implement a Performance-based
Accountability Program. The primary goal of the Program shall be to improve student
performance. The State Board of Education shall adopt:

(1) Procedures and
guidelines through which, beginning with the 1990-91 fiscal year, local school
administrative units may participate in the Program;

(2) Guidelines for
developing local school improvement plans with three-year student performance
goals and annual milestones to measure progress in meeting those goals; and

(3) A set of student
performance indicators for measuring and assessing student performance in the
participating local school administrative units. These indicators may shall
include attendance rates, dropout rates, test scores, parent involvement,
and post-secondary outcomes. outcomes; and

(4)Guidelines
for school performance indicators for measuring and assessing school
performance in the participating local school administrative units. These
indicators shall concern how to gauge community involvement, parent
involvement, professional development of teachers, and the school climate with
regard to the safety of students and employees and the use of positive
discipline. These indicators shall not rely predominantly on test scores."

(b) G.S. 115C-238.3, as
rewritten by Chapter 38 of the 1993 Session Laws and Chapter 263 of the 1993
Session Laws, reads as rewritten:

"§
115C-238.3. Development of local plans; elements of local plans.

(a) Development of
systemwide plan by the local board of education. - The board of education of a
local school administrative unit that elects to participate in the Program
shall develop and submit a local school improvement plan for the entire local
school administrative unit to the State Superintendent of Public Instruction
before April 15 of the fiscal year preceding the fiscal year in which
participation is sought.

A systemwide improvement plan shall remain in effect for no
more than three years.

(b) Establishment of
student performance goals and a systemwide staff development plan by the
local board of education for the systemwide plan. - The local board of
education shall establish student performance goals and a systemwide staff
development plan for the local school administrative unit. unit
for inclusion in the systemwide plan. The local board of education shall
actively involve an advisory panel composed of a substantial number of
teachers, school administrators, other school staff, and parents of children
enrolled in the local school administrative unit, in developing the student
performance goals for the local school improvement plan. Parents serving on
advisory panels shall not be employees of the school unit and shall reflect the
racial and socioeconomic composition of the students enrolled in the local
school administrative unit. The advisory panel shall ensure substantial
parent participation. It is the intent of the General Assembly that
teachers have a major role in developing the student performance goals for the
local school improvement plan; therefore, at least half of the staff members
participating in this advisory panel shall be teachers. The teachers Every
teacher in the local school administrative unit shall select the
teachers who are involved in the advisory panel. have an opportunity to
elect by secret ballot the teachers who are involved in the advisory panel.

The performance goals for the local school administrative
unit shall address specific, measurable goals for all student and school performance
indicators adopted by the State Board. Factors that determine gains in
achievement vary from school to school; therefore, socioeconomic factors and
previous student performance indicators shall be used as the basis of the local
school improvement plan.

The systemwide staff development plan shall be consistent
with the systemwide goals and shall include a component to accommodate the
staff development needs at the building level as expressed in each building's
improvement plan. In designing this component of the systemwide staff
development plan, direct allocation of a needed portion of the staff development
funds to the building level shall be given first priority. Each school
building shall have the flexibility to combine its staff development allocation
with other schools in the local school administrative unit when the staff
development needs of those schools are substantially similar as expressed in
their approved building-level plans.

(b1) Development by each school of
strategies for attaining local student performance goals. - The principal of
each school, representatives of the building-level staff, and parents of
children enrolled in the school shall develop a building-level plan to address
student performance goals appropriate to that school from those established by
the local board of education. Parents serving on building-level committees
shall reflect the racial and socioeconomic composition of the students enrolled
in that school and shall not be members of the building-level staff.
Parental involvement is a critical component of school success and positive
student outcomes; therefore, it is the intent of the General Assembly that
parents, along with teachers, have a substantial role in developing student
performance goals at the building level. To this end, building-level
advisory board meetings shall be held at a convenient time to assure substantial
parent participation. These The strategies for
attaining local school performance goals shall include a plan for the use of
staff development funds that may be made available to the school by the local
board of education to implement the building-level plan. These
strategies may also include requests for waivers of State laws,
regulations, or policies for that school. A request for a waiver shall (i)
identify the State laws, regulations, or policies that inhibit the local unit's
ability to reach its local accountability goals, (ii) set out with specificity
the circumstances under which the waiver may be used, and (iii) explain how a
waiver of those laws, regulations, or policies will permit the local unit to
reach its local goals.

Support among affected staff members is essential to
successful implementation of a building-level plan to address student
performance goals appropriate to a school; therefore, the principal of the
school shall present the proposed building-level plan to all of the staff assigned
to the school building for their review and vote. The vote shall be by secret
ballot. The principal may submit the building-level plan to the local board of
education for inclusion in the systemwide plan only if the proposed
building-level plan has the approval of a majority of the staff who voted on
the plan.

The local board of education shall accept or reject the
building-level plan. The local board shall not make any substantive
changes in any building-level plan that it accepts; the local board shall set
out any building-level plan that it accepts in the systemwide plan. If the
local board rejects a building-level plan, the local board shall state with
specificity its reasons for rejecting the plan; the principal of the school for
which the plan was rejected, representatives of the building-level staff, and
parents of children enrolled in the school may then prepare another plan,
present it to the building-level staff for a vote, and submit it to the local
board for inclusion in the systemwide plan. If no building-level plan is
accepted for a school before March 15 of the fiscal year preceding the fiscal
year in which participation is sought, the local board may develop a plan for
the school for inclusion in the systemwide plan; the General Assembly urges the
local board to utilize the proposed building-level plan to the maximum extent
possible when developing such a plan.

(b2) Waivers concerning central
office staffstaff. - A local board of education may request
waivers of State laws, regulations, or policies which are included in the
building plans described in subsection (b1) of this section, and it may also
request waivers which affect the organization, duties, and assignment of
central office staff only. Provided, none of the duties to be performed
pursuant to G.S. 115C-436 may be waived. A request for a waiver shall (i)
identify the State laws, regulations, or policies that inhibit the local unit's
ability to reach its local accountability goals, (ii) set out with specificity
the circumstances under which the waiver may be used, and (iii) explain how a
waiver of those laws, regulations, or policies will permit the local unit to
reach its local goals.

(c) Development by each
school of a differentiated pay plan for that school; development by the local
board of education of a differentiated pay plan for central office personnel. -

(1) The local school
administrative unit shall consider a plan for differentiated pay. The local
plan shall include a plan for differentiated pay, in accordance with G.S.
115C-238.4, unless the local school administrative unit elects not to
participate in any differentiated pay plan.

(2) The principal of each
school, representatives of the building-level staff, and parents of children
enrolled in the school shall develop a building-level differentiated pay plan
for the school when they develop their building-level plan to address student
performance goals appropriate to the school. By October 1 of each
year, the principal shall disclose to all affected personnel the total
allocation of funds for differentiated pay. At the end of the fiscal
year, the principal shall make available to all affected personnel a report of
all disbursement from the building-level differentiated pay plan.

Support among affected staff members
is essential to successful implementation of a building-level differentiated
pay plan; therefore, the principal of the school shall present the proposed
building-level plan to all of the staff assigned to the school building for
their review and vote. The vote shall be by secret ballot. The
principal may submit the building-level differentiated pay plan to the local
board of education only if the proposed building-level differentiated pay plan
has the approval of a majority of the staff who voted on the plan.

The local board of education shall
accept or reject the building-level differentiated pay plan. The local
board shall not make any substantive changes in any building-level plan that it
accepts; the local board shall set out any building-level plan that it accepts
in the systemwide differentiated pay plan. If the local board rejects a
building-level plan, the local board shall state with specificity its reasons
for rejecting the plan; the principal of the school for which the plan was
rejected, representatives of the building-level staff, and parents of children
enrolled in the school may then prepare another plan, present it to all of the
staff eligible to receive differentiated pay, in accordance with G.S.
115C-238.4(a), for a vote, and submit it to the local board for inclusion in
the systemwide plan. If no building-level plan is accepted for a school before
March 15 of the fiscal year preceding the fiscal year in which participation is
sought, the local board may develop a plan for the school building for
inclusion in the systemwide plan; the General Assembly urges the local board to
utilize the proposed building-level plan to the maximum extent possible when
developing such a plan.

(3) The local board of
education shall develop a plan for differentiated pay for all classes of
personnel assigned to the central office that the local board determines are
participants in the development or implementation of the local school
improvement plan, and shall include the plan in the systemwide differentiated
pay plan.

(4) A systemwide
differentiated pay plan shall remain in effect for no more than three years. At
the end of three years, a plan to continue, discontinue, or modify that
differentiated pay plan shall be developed in accordance with subdivisions (2)
and (3) of this subsection.

(c) Part 4 of Article 16
of Chapter 115C of the General Statutes is amended by adding a new section to
read:

"§
115C-238.6A. Distribution of staff development funds.

Any funds the local board of education makes available to
an individual school building to implement the local school improvement plan
shall be used in accordance with the building-level plan set out in the
systemwide plan.

By October 1 of each year, the principal shall disclose to
all affected personnel the total allocation of all funds available to the
school for staff development and the superintendent shall disclose to all
affected personnel the total allocation of all funds available at the system
level for staff development. At the end of the fiscal year, the principal
shall make available to all affected personnel a report of all disbursements
from the building-level staff development funds, and the superintendent shall
make available to all affected personnel a report of all disbursements at the
system level of staff development funds."

(d) G.S. 115C-238.7(a)
reads as rewritten:

"(a) There is created the Task
Force on Site-Based Management within the Department of Public Instruction.

The Task Force shall be composed of 15 21 members
appointed as follows:

(1) The Superintendent of
Public Instruction;

(2) One member of the
State Board of Education appointed by the State Board of Education;

(3) Two members of the
Senate appointed by the President Pro Tempore of the Senate;

(4) Two members of the
House of Representatives appointed by the Speaker of the House of
Representatives;

(5) One member of a local
board of education appointed by the President Pro Tempore of the Senate after
receiving recommendations from The North Carolina State School Boards
Association, Inc.;

(6) One member of a local
board of education appointed by the Speaker of the House of Representatives
after receiving recommendations from The North Carolina State School Boards
Association, Inc.;

(7) One local school
superintendent appointed by the President Pro Tempore of the Senate after
receiving recommendations from the North Carolina Association of School
Administrators;

(8) One local school
superintendent appointed by the Speaker of the House of Representatives after
receiving recommendations from the North Carolina Association of School Administrators;

(9) One school principal
appointed by the President Pro Tempore of the Senate after receiving
recommendations from the Tar Heel Association of Principals/Assistant
Principals and the Division of Administrators of the North Carolina Association
of Educators;

(10) One school principal appointed by
the Speaker of the House of Representatives after receiving recommendations
from the Tar Heel Association of Principals/Assistant Principals and the
Division of Administrators of the North Carolina Association of Educators;

(11) One school teacher appointed by
the President Pro Tempore of the Senate after receiving recommendations from
the North Carolina Association of Educators, Inc., the North Carolina
Federation of Teachers, and the Professional Educators of North Carolina, Inc.;

(12) One school teacher appointed by
the Speaker of the House of Representatives after receiving recommendations
from the North Carolina Association of Educators, Inc., the North Carolina
Federation of Teachers, and the Professional Educators of North Carolina, Inc.;
and

(13) The Director of the Task Force on
Site-Based Management, appointed by the Superintendent of Public Instruction in
accordance with subsection (d) of this section. section;

(14)One parent of a public
school child appointed by the Superintendent of Public Instruction;

(15)Two at-large members
appointed by the Superintendent of Public Instruction;

(16)One representative of
business and industry appointed by the Governor;

(17)One representative of
institutions of higher education appointed by the Board of Governors of The
University of North Carolina; and

(18)One county commissioner
appointed by the Superintendent of Public Instruction after receiving
recommendations from the North Carolina Association of County Commissioners.

Members of the Task Force shall serve for two-year terms.

All members of the Task Force shall be voting members.
Vacancies in the appointed membership shall be filled by the officer who made the
initial appointment. The Director of the Task Force on Site-Based Management
shall serve as chair of the Task Force.

Members of the Task Force shall receive travel and
subsistence expenses in accordance with the provisions of G.S. 120-3.1, G.S.
138-5, and G.S. 138-6."

(e) G.S. 115C-21.1(b)
reads as rewritten:

"(b) The Department of
Public Instruction shall monitor and provide a report to the General Assembly
by May 1, 1991, and annually thereafter showing the school units that have been
granted class size waivers pursuant to G.S. 115C-238.3(d)115C-238.6(a),
have reported class size exceptions, and have converted State-funded teacher
positions to other positions, dollars, or other expenditures."

(f) Members
appointed to the Site-Based Management Task Force in accordance with subsection
(d) of this section shall serve until September 1, 1994, and shall be eligible
for reappointment. Successive appointments shall be for two-year terms.

(g) The State Board of
Education shall report to the Joint Legislative Education Oversight Committee
on the guidelines for indicators of school performance adopted in accordance
with subsection (a) of this section no later than February 1, 1994. School
performance indicators shall be addressed in local school improvement plans
modified or adopted after March 15, 1994.

(h) Subsections (b) and
(c) of this section shall apply to local school improvement plans in effect on
and after July 1, 1994.

Sec. 144.3. The Legislative Research Commission shall
study the driver education program offered by the public schools. The
study shall consider:

(1) The efficiency of the
program and the impact on the efficiency of the program of the 1991 statutory
changes allowing local boards of education to contract with public or private
entities to provide driver education;

(2) The impact on parents
and students, especially in rural areas, of the State Board of Education rule
requiring that driver education be offered outside of the regular instructional
day; and

(3) The overall cost of
the program and the projected five-year cost of the program.

The Commission shall report the results of its study by April
15, 1994.

Sec. 145. (a) The Department of Transportation
shall begin converting all existing permanent hourly Highway Maintenance Worker
positions to permanent full-time Highway Maintenance Worker status effective
July 1, 1993. All current permanent hourly employees shall be evaluated
between July 1, 1993, and December 31, 1993, and those receiving satisfactory
ratings shall be placed in a permanent Highway Maintenance Worker position as
they become available. The Department shall cease hiring permanent hourly
workers on July 1, 1993, and complete conversion of permanent hourly workers to
permanent status by January 1, 1994.

(a) There is established
the Elderly and Handicapped Disabled Transportation Assistance
Program that shall provide State financed elderly and handicapped disabled
transportation services for counties within the State. The Department
of Transportation is designated as the agency of the State responsible for
administering State funds appropriated to purchase elderly and handicapped disabled
transportation services for counties within the State. The Department
shall develop appropriate procedures regarding the distribution and use of
these funds and shall adopt rules to implement these procedures. No funds
appropriated pursuant to this act may be used to cover State administration
costs.

(b) For the purposes of
this section, an elderly person is defined as one who has reached the age of 60
or more years, and a handicapped disabled person is defined as
one who has a physical or mental impairment that substantially limits one or
more major life activities, an individual who has a record of such impairment,
or an individual who is regarded as having such an impairment. Certification
of eligibility shall be the responsibility of the county.

(c) All funds distributed
by the Department under this section are intended to purchase additional
transportation services, not to replace funds now being used by local
governments for that purpose. These funds are not to be used towards the
purchase of transportation vehicles or equipment. To this end, only those
counties maintaining elderly and handicapped disabled transportation
services at a level consistent with those in place on January 1, 1987, shall be
eligible for additional transportation assistance funds.

(d) The Public
Transportation Division of the Department of Transportation shall distribute
these funds to the counties according to the following formula: fifty
percent (50%) divided equally among all counties; twenty-two and one-half
percent (22 1/2%) based upon the number of elderly residents per county as a
percentage of the State's elderly population; twenty-two and one-half percent
(22 1/2%) based upon the number of handicapped disabled residents
per county as a percentage of the State's handicapped disabled population;
and, the remaining five percent (5%) based upon a population density factor
that recognizes the higher transportation costs in sparsely populated counties.

(e) Funds distributed by
the Department under this section shall be used by counties in a manner
consistent with transportation development plans which have been approved by
the Department and the Board of County Commissioners. To receive funds
apportioned for a given fiscal year, a county shall have an approved
transportation development plan. Funds that are not obligated in a given
fiscal year due to the lack of such a plan will be distributed to the eligible
counties based upon the distribution formula prescribed by subsection (d) of
this section."

Sec. 148. Of the funds appropriated in this act to
the Department of Transportation, the sum of twenty million dollars
($20,000,000) shall be allocated in each fiscal year of the biennium for small
urban construction projects. Fourteen million dollars ($14,000,000) of
these funds shall be allocated equally in each fiscal year of the biennium
among the 14 Highway Divisions for the Small Urban Construction Program for
small urban construction projects that are located within the area covered by a
one-mile radius of the municipal corporate limits. The remaining six
million dollars ($6,000,000) shall be used statewide for rural or small urban
highway improvements as approved by the Secretary of the Department of
Transportation.

None of these funds used for rural secondary road
construction are subject to the county allocation formula as provided in G.S.
136-44.5.

The Department of Transportation shall report to the members
of the General Assembly on projects funded pursuant to this section in each
member's district prior to the Board of Transportation's action. The
Department shall make a quarterly comprehensive report on the use of these
funds to the Joint Legislative Highway Oversight Committee and the Fiscal
Research Division.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

IMPLEMENTING SELECTED GPAC
RECOMMENDATIONS

Sec. 149. (a) The Department of Transportation
shall centralize the monitoring and reporting of data related to small and
minority business development firms and civil rights-related matters, and
reorganize the Department so that functions related to these activities will be
integrated into and institutionalized under the Division of Highways. The
Department will comply with this section by July 1, 1993. The Department
shall report to the Joint Legislative Highway Oversight Committee by October 1,
1993, on the reorganization of civil rights-related functions within the
Department.

(b) The Secretary of the
Department of Transportation shall submit to the General Assembly and the Joint
Legislative Highway Oversight Committee, on or before September 1, 1993, a plan
to consolidate part-time driver licensing offices across the State to increase
productivity. The plan shall consider the number of applications
processed per day by examiners, the number of full-time and part-time offices
located in each county, the proximity of offices in each county to one another,
population served, costs to support part-time offices, and any other criteria
the Secretary deems warranted. The plan shall also document cost savings
by office and the estimated increase in productivity due to
consolidations. The Secretary of the Department of Transportation shall
further notify the Joint Legislative Highway Oversight Committee on or before
April 1, 1994, of the amount of funds by which the Division of Motor Vehicles'
1994-95 appropriation can be reduced due to consolidation of driver licensing
offices.

(c) The Secretary of the
Department of Transportation shall submit a plan to the Joint Legislative
Highway Oversight Committee not later than November 1, 1993, outlining steps
the Department plans to take to enhance efficiency of the Vehicle Registration
Process.

(d)(1) The General Assembly finds that the Department of
Transportation is currently seeking funding for 298 more staff positions in its
preconstruction units during the next 15 years to handle the work load from the
Highway Trust Fund. The majority of these positions are to be filled
during the next four years in the Highway Design and Planning Branch and the
Environmental Branches.

The use of private engineering firms
to handle peak work load requirements is a well-founded strategy for avoiding
the public-sector problems of staffing up and down for varying work loads.

The Department of Transportation is
currently contracting out twenty percent (20%) to twenty-five percent (25%) of
preconstruction work to private engineering firms. If outside contract
forces were used to address the preconstruction work load associated with the
additional 298 positions, then the level of preconstruction work contracted out
would rise to about thirty-two percent (32%) to thirty-six percent (36%).

This increase in contracting out
work load, from twenty percent (20%) to twenty-five percent (25%), to
thirty-two percent (32%) to thirty-six percent (36%) would be a reasonable
level of increase because the Highway Trust Fund represents a seventy-eight
percent (78%) increase in the pre-1989 preconstruction work load of the
Department.

(2) The Secretary of
Transportation shall submit a plan to the Joint Legislative Highway Oversight
Committee, by September 1, 1993, to implement the recommendation in subdivision
(1) of this subsection to freeze preconstruction positions and contract out the
balance of its preconstruction work to private engineering firms.

(e)(1) The General Assembly finds that the Department of
Transportation's ongoing strategy to increasingly rely on the use of private
engineering firms to perform surveys, process control, and construction
engineering and inspection functions should be continued.

With the Highway Trust Fund program
entering a phase of expanded construction activity, having completed a number
of project plans, the Department will need to further leverage its in-house
construction staff to meet the requirements of the program.

(2) The increased use of
outside contract forces to perform quality control and quality assurance
functions will require continued Department of Transportation construction
staff involvement in project oversight and verification, careful selection of
vendors, and rigorous contract administration of these projects. The
level of this outside contracting should be based on the following
considerations:

b. Retain
sufficient in-house capability to address the base load requirements of the
Highway Trust Fund construction program and properly administer the outside
construction engineering and inspection-related contracts; and

c. Select
contractors with significant experience in performing construction engineering
and inspection for major road and bridge projects and familiarity with
Department of Transportation engineering standards and construction
specifications.

(3) By using private
engineering firms to handle more of the Highway Trust Fund program construction
work load, the Department of Transportation can reduce the number of new
in-house staff required to support the construction portion of the program.

(4) The Secretary of
Transportation shall report to the Joint Legislative Highway Oversight
Committee, no later than September 1, 1993, a plan meeting the construction
needs of the Highway Trust Fund program with a minimum of new construction
staff in the Department of Transportation and increasing the use of outside
contract forces while meeting the criteria in subdivisions (1) through (3) of
this subsection.

(f)(1) The General Assembly finds that the Equipment
Sections of the 14 highway divisions perform maintenance and repair functions
for all Department of Transportation equipment, except for sedans which are
maintained through the Department of Administration. Each division has
between five and 10 garages, including one major division garage. In some
cases, two-person garages continue to operate in certain rural areas of the
State, where the distance between garages is fairly large (40 to 50
miles). In addition, there are local county garages colocated near the
division garages. These latter garages represent a potential opportunity
for consolidation, to reduce the overall number of garage facilities maintained
by the Department of Transportation.

(2) The Department of
Transportation shall develop a plan to consolidate the equipment section
resources associated with the 14 division garages and those 14 Department
county garages located nearby for submission to the Joint Legislative Highway
Oversight Committee by February 1, 1994.

(g)(1) The General Assembly finds that Division Traffic
Services units are variously organized, with some units having all field forces
reporting to the Division Traffic Services Supervisor and others having
signal-related forces assigned to the Assistant Division Traffic Engineer in a
Traffic Control Technical Services unit. The latter arrangement provides
a better balance of technical and nontechnical traffic services personnel among
the middle management positions within this unit, resulting in a more equitable
span of control among these supervisory personnel. This alignment
recognizes the increasingly technical aspects of traffic signal planning and
implementation, while also providing for a more balanced distribution of
Traffic Services staff among the Traffic Services supervisors.

(2) The Secretary of
Transportation shall realign the Traffic Services sections of the 14 Traffic
Divisions so that the signal/traffic control personnel report to the Assistant
Traffic Engineer and pavement markings/signs personnel report to the Traffic
Services Supervisor.

(h)(1) The General Assembly finds that the overall level
of staffing for the Department of Transportation should be based on:

a. The
determination of resources needed to provide an acceptable level of service,
accomplish the annual maintenance program efficiently, and erase the existing
maintenance backlog; and

b. The
determination of the most appropriate mix of contract and in-house resources.

As the maintenance work load has
increased, the Department of Transportation has been able to handle a portion
of the increased work through contracting. The Department of
Transportation can make additional use of private contractors.

(2) The Department of
Transportation shall report to the Joint Legislative Highway Oversight
Committee, on or before November 1, 1993, a plan on maintenance staffing and on
ways to increase efficiency within the maintenance work force. The plan
may include:

a. The
continued contracting out of construction activities, as well as those
maintenance functions, such as mowing, roadside rest area maintenance, building
maintenance, signal installation, and signal maintenance, that it currently
contracts;

b. The
contracting out of all of the Secondary Road Construction program and free up
the in-house maintenance staff now performing this function to concentrate on
backlogged and expanding maintenance needs; and

c. Expanding
the Department's efforts to contract out maintenance functions, by increasing
the proportion of contracted work in such areas as: ditch cleaning,
landscaping, and bituminous surface treatment resurfacing.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

EQUIPMENT FUND TRANSFER

Sec. 150. The Department of Transportation's
Equipment Fund shall pay to the Highway Fund the sum of ten million dollars
($10,000,000) for the 1993-94 fiscal year.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

DEPARTMENT OF TRANSPORTATION TO
REPORT ON BILLBOARD FEES

Sec. 151. The Department of Transportation shall
report to the Joint Legislative Highway Oversight Committee on or before
October 1, 1993, concerning billboard fees. The Department shall report
on the fees currently collected and the amounts of fees that would be needed to
fund the administration of the billboard program.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

DIVISION OF MOTOR VEHICLES TO
REPORT ON PERSONNEL EFFECTS OF NEW COMPUTER SYSTEM

Sec. 152. The Secretary of Transportation shall
report to the Joint Legislative Highway Oversight Committee, on or before
October 1, 1993, on the plans for reducing staffing and costs during the
1994-95 fiscal year as a result of the implementation of the new computer
systems for Drivers Licensing and Vehicle Registration. The report shall
also contain an update on the status of completion of the implementation of the
new computer systems as of the date of the report.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

MODIFY AVIATION APPROPRIATION

Sec. 153. (a) G.S. 136-16.4 reads as rewritten:

"§
136-16.4. Continuing aviation appropriations.

There is annually appropriated, beginning with the 1987-88
fiscal year, appropriated from the General Fund to the Department of
Transportation for aviation purposes, a sum equal to the estimated revenue
derived from the State's sales and use taxes (exclusive of refunds, penalties,
and interest) collected and received on sales made on and after the first day
of the fiscal year representing sales and use taxes on aircraft, aircraft
parts, accessories, lubricants and aviation fuel. the sum of eight
million four hundred thousand dollars ($8,400,000) for fiscal year 1993-94 and
the sum of eight million nine hundred thousand dollars ($8,900,000) for fiscal
year 1994-95. Each subsequent fiscal year, there is appropriated from the
General Fund to the Department of Transportation the amount appropriated by
this section to the Department of Transportation for the preceding fiscal year,
plus or minus the percentage of the amount by which the collection of State
sales and use taxes increased or decreased during the preceding fiscal
year. The Department of Transportation may use funds appropriated under
this section only for aviation purposes."

(b) This section becomes
effective July 1, 1993.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

DEPARTMENT OF TRANSPORTATION TO
REPORT ON THE USE OF INMATE LABOR

Sec. 154. The Department of Transportation shall
report to the Joint Legislative Highway Oversight Committee, on or before
October 1, 1993, on the use of minimum and medium custody inmates. The
report shall detail:

(1) The requirements
placed on the Department by G.S. 148-26, the State policy on the employment of
prisoners.

(2) Whether the use of
inmate labor is cost-effective.

(3) Whether the
cost-sharing arrangement with the Department of Correction is equitable with
respect to the contributions from the Department of Transportation and the
Highway Fund.

(4) A cost-effective
analysis comparing the cost and productivity of using inmate labor versus using
temporary highway maintenance workers.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

BRANCH AGENT TRANSACTION RATE

Sec. 155. The Division of Motor Vehicles of the
Department of Transportation shall compensate a contractor with whom it has a
contract under G.S. 20-63(h) at the rate of ninety-two cents (92¢) for each
transaction performed in accordance with the requirements set by the
Division. A transaction is any of the following activities:

(1) Issuance of a
registration plate, a registration card, a registration renewal sticker, or a
certificate of title.

(2) Issuance of a
handicapped placard or handicapped identification card.

(3) Acceptance of an
application for a personalized registration plate.

(6) Acceptance of an
application for, or issuance of, a refund for a fee or a tax, other than the
highway use tax.

(7) Receipt of the civil
penalty imposed by G.S. 20-309 for a lapse in financial responsibility or
receipt of the restoration fee imposed by that statute.

(8) Acceptance of a notice
of failure to maintain financial responsibility for a motor vehicle.

(9) Collection of the
highway use tax.

Performance at the same time of any combination of the items
that are listed within each subdivision or are listed within subdivisions (1)
through (8) of this section is a single transaction. Performance of the
item listed in subdivision (9) of this section in combination with any other
items listed in this section is a separate transaction.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

HIGHWAY FUND ALLOCATIONS BY
CONTROLLER

Sec. 156. The Controller of the Department of
Transportation shall allocate at the beginning of each fiscal year from the
various appropriations made to the Department of Transportation in this act,
Titles:

State Construction

State Funds to Match Federal Highway Aid

State Maintenance

Ferry Operations,

sufficient funds to eliminate all
overdrafts on State maintenance and construction projects, and these
allocations may not be diverted to other purposes.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

CASH FLOW HIGHWAY FUND AND HIGHWAY
TRUST FUND APPROPRIATIONS

Sec. 157. (a) The General Assembly authorizes and
certifies anticipated revenues of the Highway Fund as follows:

For Fiscal Year
1995-96
$969,300,000

For Fiscal Year
1996-97
$979,400,000.

(b) The General Assembly
authorizes and certifies anticipated revenues of the Highway Trust Fund as
follows:

For Fiscal Year
1995-96
$578,200,000

For Fiscal Year
1996-97
$590,200,000.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

HIGHWAY FUND LIMITATIONS ON
OVEREXPENDITURES

Sec. 158. (a) Overexpenditures from Section 4 of
this act may be made by authorization of the Director of the Budget, Titles:

State Construction Primary Construction

State Construction Urban Construction

State Construction Access and Public Service Roads

State Funds to Match Federal Highway Aid

State Maintenance

Ferry Operations,

provided that there are corresponding
underexpenditures from these same Titles. Overexpenditures or underexpenditures
in any Titles may not vary by more than ten percent (10%) without prior
consultation with the Advisory Budget Commission. Written reports
covering overexpenditures or underexpenditures of more than ten percent (10%)
shall be made to the Joint Legislative Highway Oversight Committee. The
reports shall be delivered to the Director of the Fiscal Research Division not
less than 96 hours prior to the beginning of the Committee's full meeting.

(b) Overexpenditures from
Section 4 of this act, Titles:

State Construction Primary Construction

State Construction Urban Construction

State Construction Access and Public Service Roads

State Funds to Match Federal Highway Aid

State Maintenance

Ferry Operations,

for the purpose of providing additional
positions shall be approved by the Director of the Budget and shall be reported
on a quarterly basis to the Joint Legislative Highway Oversight Committee and
to the Fiscal Research Division.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

RESURFACED ROADS MAY BE WIDENED

Sec. 159. Of the contract maintenance resurfacing
program funds appropriated in this act to the Department of Transportation, an
amount not to exceed fifteen percent (15%) of the Board of Transportation's allocation
of these funds may be used for widening existing narrow pavements that are
scheduled for resurfacing. The Department of Transportation shall report
on the use of these funds to the Joint Legislative Highway Oversight Committee
and the Fiscal Research Division by May 15, 1994.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

HIGHWAY FUND ADJUSTMENTS TO
REFLECT ACTUAL REVENUE

Sec. 160. Any unreserved credit balance in the
Highway Fund on June 30 of each of the fiscal years of this biennium shall
support appropriations in the succeeding fiscal year. If all of the
balance is not needed for these appropriations, the Director of the Budget may
use the remaining excess to establish a reserve for access and public roads, a
reserve for unforeseen happening of a state of affairs requiring prompt action
as provided by G.S. 136-44.1, and other required reserves. Actual revenue
in excess of estimated revenue shall be placed in the reserve for highway
maintenance. If all of the remaining excess is not used to establish
these reserves, the remainder shall be allocated to the State-funded
maintenance appropriations in the manner approved by the Board of
Transportation. The Board of Transportation shall report monthly to the
Joint Legislative Highway Oversight Committee and the Fiscal Research Division
about the use of the reserve for highway maintenance.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

DEPARTMENT OF TRANSPORTATION TO
PAY COMPENSATION OF ATTORNEYS ASSIGNED TO MOTOR VEHICLES DIVISION BY THE
ATTORNEY GENERAL

Sec. 161. The Department of Transportation shall
pay the compensation, including salaries and benefits, of the attorneys
assigned to the Division of Motor Vehicles by the Attorney General. The
funds to pay the compensation for those legal positions shall be taken from the
Highway Fund.

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

DEPARTMENT OF TRANSPORTATION
EXEMPTION FROM GENERAL STATUTES FOR EXPERIMENTAL PROJECT-CONGESTION MANAGEMENT

Sec. 162. The Department of Transportation may
enter into a design-build-warrant contract to develop, with Federal Highway
Administration participation under The 1991 Intermodal Surface Transportation
Efficiency Act, Title VI, Part B, Sections 6051-6059, a "Congestion
Avoidance and Reduction for Autos and Trucks (CARAT)"system of traffic
management for the greater Charlotte-Mecklenburg urban areas.
Notwithstanding any other provision of law, contractors, contractors'
employees, and Department of Transportation employees involved in this project
only do not have to be licensed by occupational licensing boards as
"license" and "occupational licensing board" are defined in
G.S. 93B-1 and for the purpose of entering into contracts, the Department of
Transportation is exempted from the provisions of the following General
Statutes: G.S. 136-28.1, 143-52, 143-53, 143-58, 143-128, and
143-129. These statutory exemptions are limited and available only to the
extent necessary to comply with federal rules, regulations, and policies for
completion of this project.

The Department of Transportation shall report quarterly to
the Joint Legislative Highway Oversight Committee on its efforts to enter into
a design-build-warrant contract and to award and construct the project.
The report shall include, but not be limited to, the number of types of firms
bidding on the project, special qualifications of the firms bidding, and the
effect statutory exemptions might have had on the award and construction of the
project and the receipt of federal discretionary funding for the project.

DEPARTMENT OF TRANSPORTATION TO
REPORT ON DIVISION OF MOTOR VEHICLES ENFORCEMENT SECTION

Sec. 163. The Department of Transportation shall
report to the Joint Legislative Highway Oversight Committee, on or before
October 1, 1993, on efforts by the Department to restructure the Enforcement
Section of the Division of Motor Vehicles.

Taxes collected under this Article at the rate of eight
percent (8%) shall be credited to the General Fund. Taxes collected under
this Article at the rate of three percent (3%) shall be credited to the North
Carolina Highway Trust Fund. In each fiscal year the State Treasurer
shall transfer the sum of one hundred seventy million dollars ($170,000,000) of
the taxes deposited in the Trust Fund to the General Fund. Fund
by transferring one-fourth of this amount at the end of each quarter in the
fiscal year. The transfer of funds authorized by this section may
be made by transferring one-fourth of the amount at the end of each quarter in
the fiscal year or by transferring the full amount annually on July 1 of each
fiscal year, subject to the availability of revenue."

(b) The interest earned
on the one hundred seventy million dollars ($170,000,000) to be transferred
pursuant to subsection (a) of this section shall be deposited in the General
Fund.

Sec. 165. The Commissioner of Motor Vehicles shall
report to the Appropriations Committees on Transportation of the House of
Representatives and Senate and to the Fiscal Research Division, on the first
day of the 1994 Session of the General Assembly, on the implementation of the
1993-94 expansion budget requests for computer equipment, computerized vehicle
weighing systems, and the Optical Disk File Storage System. The report
shall include the potential savings in manpower and office expenses
attributable to the new equipment.

MAJOR RESURFACING AND MAINTENANCE PROJECTS
TO BE IN TRANSPORTATION IMPROVEMENT PROGRAM

Sec. 166. The Secretary of the Department of
Transportation shall report to the Appropriations Committees on Transportation
of the House of Representatives and the Senate and the Fiscal Research Division,
not later than 30 days before the start of the 1994 Session of the General
Assembly, on a plan to include major resurfacing projects and major bridge and
highway maintenance projects on the primary system in the Transportation
Improvement Program issued pursuant to G.S. 143B-350(f)(4).

Sec. 167. Of the funds appropriated in this act
from the Highway Fund to the Department of Transportation, the sum of two
hundred twenty-two thousand seven hundred fifty dollars ($222,750) for the
1993-94 fiscal year and the sum of three hundred forty-six thousand five
hundred dollars ($346,500) for the 1994-95 fiscal year shall be used for a
study of the transportation needs of the Piedmont Triad Area involving the
metropolitan planning organizations of High Point, Greensboro, and
Winston-Salem.

The Board of Transportation shall allocate funds for the
study as needed until the appropriation for each year has been used.
Funds not used in any year shall revert to the Highway Fund.

The Board of Transportation shall require the recipient of
these fund allocations to provide detailed periodic reports on its activities
and accomplishments and the expenditures and revenues from all sources. A
final report shall be made to the Board of Transportation and the North
Carolina General Assembly by May 31, 1995.

Sec. 168. (a) The Board of Transportation shall
undertake a review of its policies concerning naming or renaming of bridges,
highways, and other facilities on the State highway system.

(b) The Board of Transportation
shall adopt guidelines for the naming or renaming of bridges, highways, and
other facilities on the State highway system by January 1, 1994. Prior to
the adoption of guidelines, the Board shall review the guidelines with the
Joint Legislative Highway Oversight Committee by October 1, 1993.

(c) Until the Board of
Transportation has adopted guidelines pursuant to subsection (b) of this
section, there shall be a moratorium on the naming or renaming of bridges,
highways, and other facilities on the State highway system.

STUDY OF HIGHWAY FUND EXPENDITURES
TO AGENCIES OTHER THAN THE DEPARTMENT OF TRANSPORTATION

Sec. 169. The Legislative Research Commission may
study, and the Fiscal Trends Study Commission shall study, all appropriations
from the Highway Fund to agencies other than the Department of Transportation,
including the Highway Patrol, Department of Correction, and Department of Public
Instruction, and shall report to the General Assembly by the first day of the
1994 Regular Session on the appropriateness of these appropriations, the trends
of these appropriations, on how the future growth in these appropriations can
be limited, and on a policy on what type of programs can be funded from the
Highway Fund.

Sec. 169.1. Notwithstanding any other provision of
law, the Department of Transportation shall maintain the streets and highways
on the State highway system within municipalities that are not eligible for
funds under G.S. 136-41.2. The Department of Transportation shall
maintain the streets and highways as part of the State secondary system, and
maintain the paving priority for the secondary roads the same as if the
municipality were not incorporated, as long as the ineligibility for funds
under G.S. 136-41.2 continues. The provisions of this section apply only
to municipalities incorporated between July 1, 1989, and June 30, 1993.

The Joint Legislative Highway Transportation Oversight
Committee is established. The Committee consists of 16 members as
follows:

(1) Eight members of the
Senate appointed by the President Pro Tempore of the Senate, at least two of
whom are members of the minority party; and

(2) Eight members of the
House of Representatives appointed by the Speaker of the House of
Representatives, at least three of whom are members of the minority party.

Terms on the Committee are for two years and begin on January
15 of each odd-numbered year, except the terms of the initial members, which
begin on appointment. Members may complete a term of service on the
Committee even if they do not seek reelection or are not reelected to the
General Assembly, but resignation or removal from service in the General
Assembly constitutes resignation or removal from service on the Committee.

A member continues to serve until his successor is
appointed. A vacancy shall be filled within 30 days by the officer who
made the original appointment."

(1) Review reports
prepared by the Department of Transportation under G.S. 136-184. or
any other agency of State government related, in any manner, to transportation,
when those reports are required by any law.

(2) Monitor the funds
deposited in and expenditures from the North Carolina Highway Trust Fund and
Fund, the Highway Fund. Fund, the General Fund, or any
other fund when those expenditures are related, in any manner, to
transportation.

(3) Determine whether
funds in the Trust Fund are spent in accordance with G.S. 136-17.2A and
Article 14 of Chapter 136. related, in any manner, to transportation are
being spent in accordance with law.

(4) Determine whether any
revisions are needed in the funding for a program for which funds in the Trust Fund
Fund, the Highway Fund, the General Fund, or any other fund when those
expenditures are related, in any manner, to transportation may be used,
including revisions needed to meet any statutory timetable for the or
program.

(5) Report to the General
Assembly at the beginning of each regular session concerning its determinations
of needed changes in the funding for or operation of programs funded
from the Trust Fund. related, in any manner, to transportation.

These powers, which are enumerated by way of illustration,
shall be liberally construed to provide for the maximum oversight by the
Committee of all transportation matters in this State."

(c) G.S. 120-70.52(a)
reads as rewritten:

"(a) The President Pro
Tempore of the Senate and the Speaker of the House of Representatives shall
each designate a cochair of the Joint Legislative Highway Transportation
Oversight Committee. The Committee shall meet at least once a quarter
and may meet at other times upon the joint call of the cochairs."

(d) G.S. 136-12(b) reads
as rewritten:

"(b) At least 30 days
before it approves a Transportation Improvement Program in accordance with G.S.
143B-350(f)(4) or approves interim changes to a Transportation Improvement
Program, the Department shall submit the proposed Transportation Improvement
Program or proposed interim changes to a Transportation Improvement Program to
the following members and staff of the General Assembly:

(1) The Speaker and the
Speaker Pro Tempore of the House of Representatives;

(2) The Lieutenant
Governor and the President Pro Tempore of the Senate;

(3) The Chairs of the
House and Senate Appropriations Committees;

(4) Each member of the
Joint Legislative Highway Transportation Oversight Committee; and

(5) The Fiscal Research
Division of the Legislative Services Commission."

(e) G.S. 136-184 reads as
rewritten:

"§
136-184. Reports by Department of Transportation.

(a) The Department of
Transportation shall develop, and update annually, a report containing a
completion schedule for all projects to be funded from the Trust Fund.
The report shall include a separate schedule for the Intrastate System
projects, the urban loop projects, and the paving of unpaved State-maintained
secondary roads that have a traffic vehicular equivalent of at least 50
vehicles a day. The annual update shall indicate the projects, or
portions thereof, that were completed during the preceding fiscal year, any
changes in the original completion schedules, and the reasons for the
changes. The Department shall submit the report and the annual updates to
the Joint Legislative Highway Transportation Oversight Committee.

(b) The Department of
Transportation shall make quarterly reports to the Joint Legislative Highway
Transportation Oversight Committee containing any information
requested by the Committee. The Department shall provide the Committee
with all information needed to determine if funds available under the Trust
Fund and the Transportation Improvement Program are being spent in accordance
with G.S. 136-17.2A."

(f) G.S.
143-318.14A(a) reads as rewritten:

"(a) Except as provided in
subsection (e) below, all official meetings of commissions, committees, and
standing subcommittees of the General Assembly (including, without limitation,
joint committees and study committees), shall be held in open session.
For the purpose of this section, the following also shall be considered to be
'commissions, committees, and standing subcommittees of the General Assembly':

(12) The Joint Legislative Commission
on Future Strategies for North Carolina;

(13) The Commission on Children with
Special Needs;

(14) The Legislative Committee on New
Licensing Boards;

(15) The Agriculture and Forestry
Awareness Study Commission;

(16) The North Carolina Study
Commission on Aging; and

(17) The standing Committees on
Pensions and Retirement."

(g) Any law that contains
"Joint Legislative Highway Oversight Committee" shall be deemed to
refer to the "Joint Legislative Transportation Oversight Committee".

Requested by: Senator Lee, Representatives McAllister,
McLaughlin

VISITOR AND WELCOME CENTER FUNDS

Sec. 169.3. (a) G.S. 20-79.7(c) reads as rewritten:

"(c) Use of Funds in
Special Registration Plate Account. -

(1) The Division
shall deduct the costs of special registration plates, including the costs of
issuing, handling, and advertising the availability of the special plates, from
the Special Registration Plate Account.

(2)From the
funds remaining in the Special Registration Plate Account after the deductions
in accordance with subdivision (1) of this subsection, there is appropriated
from the Special Registration Plate Account the sum of three hundred
twenty-five thousand dollars ($325,000) for the 1993-94 fiscal year and the sum
of three hundred seventy-five thousand dollars ($375,000) for the 1994-95
fiscal year to provide operating assistance for the Visitor and Welcome
Centers:

a.on
U.S. Highway 17 in Camden County, ($75,000);

b.on
U.S. Highway 17 in Brunswick County, ($75,000);

c.on
U.S. Highway 441 in Macon County, ($75,000);

d.in
the Town of Boone, Watauga County, ($75,000); and

e.on
U.S. Highway 29 in Caswell County, ($25,000) for the 1993-94 fiscal year and
($75,000) for the 1994-95 fiscal year.

(3)The Division
shall transfer the remaining revenue in the Account quarterly as follows:

(1)a. Thirty-three percent
(33%) to the account of the Department of Commerce to aid in financing
out-of-state print and other media advertising under the program for the
promotion of travel and industrial development in this State.

(2)b. Fifty percent (50%) to
the Department of Transportation to be used solely for the purpose of
beautification of highways other than those designated as interstate. These
funds shall be administered by the Department of Transportation for
beautification purposes not inconsistent with good landscaping and engineering
principles.

(3)c. Seventeen percent (17%)
to the account of the Department of Human Resources to promote travel
accessibility for disabled persons in this State. These funds shall be used to
collect and update site information on travel attractions designated by the
Department of Commerce in its publications, to provide technical assistance to
travel attractions concerning accommodation of disabled tourists, and to
develop, print, and promote the publication ACCESS NORTH CAROLINA as provided
in G.S. 168-2. Any funds allocated for these purposes that are neither spent
nor obligated at the end of the fiscal year shall be transferred to the
Department of Administration for removal of man-made barriers to disabled
travelers at State-funded travel attractions. Guidelines for the removal of
man-made barriers shall be developed in consultation with the Department of
Human Resources."

(b) The Secretary of
Transportation shall review the State's role in funding the operations of the
visitor centers receiving funding pursuant to subsection (a) of this section
and report the Secretary's findings to the Joint Legislative Highway Oversight
Committee by March 1, 1994.

"(d) Dealer's license
plates may be used on motor vehicles owned by, or assigned to, duly licensed
motor vehicle dealers of this State when operated on the highways of this State
by the dealer, corporate officers of the dealership, salespersons or full-time
employees of the dealership, and any designated part-time employees of the
dealership; provided, the vehicle is subject to the proof of financial responsibility
requirements of Article 9A of this Chapter. A dealer who sells,
trades, or services farm tractors may use a dealer license plate on a vehicle
that is owned by the dealer and is used to haul farm tractors or any other
farm-related equipment sold, traded, or serviced by the dealer. A
dealership owner who desires to use dealer's license plates as herein provided
shall make application on a form provided by the Division of Motor Vehicles and
pay the annual amount set in G.S. 20-87(7)."

Sec. 169.5. Any temporary positions in the Ferry
Division that are filled by personnel who have worked for 24 or more months as
of the effective date of this act, shall be converted to permanent full-time
positions, subject to the approval of the Secretary of Transportation.

PART 19. DEPARTMENT OF
CORRECTION

Requested by: Senator Odom, Representatives Holt, Gist

CURRENT OPERATING EXPENSES

Sec. 170. From the funds appropriated to the
Department of Correction in the certified budget for the 1993-94 fiscal year,
the Department may transfer within its budget up to five million dollars
($5,000,000) for repair and renovation of its facilities. The use of
these funds shall be subject to the prior approval of the Office of State
Budget and Management. The Department of Correction shall have a
verifiable ten percent (10%) goal for participation by minority and women
contractors in these projects. If necessary, the Department may transfer
within its budget up to six hundred fifty thousand dollars ($650,000) in each
fiscal year to match federal grant funds received by the Department.

The Department of Correction shall submit a schedule of
repairs and renovations funded pursuant to this section and shall provide
information on the use of minority and women contractors for those projects in
a quarterly report to the Joint Legislative Commission on Governmental
Operations and to the Chairs of the Senate and House Appropriations
Subcommittees on Justice and Public Safety.

Requested by: Senator Odom, Representatives Holt, Gist

LIMIT USE OF OPERATIONAL FUNDS

Sec. 171. Funds appropriated in this act to the
Department of Correction for operational costs for additional facilities shall
be used for personnel and operating expenses set forth in the budget approved
by the General Assembly in this act. These funds may not be expended for
any other purpose, and may not be expended for additional prison personnel
positions until the new facilities are within 90 days of completion, except for
certain management and support positions necessary to prepare the facility for
opening, as authorized in the budget approved by the General Assembly.

Requested by: Senator Odom, Representatives Holt, Gist

NCCIW/MATCH PROGRAM FUNDS

Sec. 172. Funds from the one hundred twelve million
five hundred thousand dollars ($112,500,000) in bond proceeds appropriated and
allocated for repairs and renovations at the North Carolina Correctional
Institution for Women in Section 239 of Chapter 689 of the 1991 Session Laws,
as amended by Section 41(a) of Chapter 1044 of the 1991 Session Laws, shall be
used to provide a gatehouse and a visiting/operations center that will include
designated space for the Mothers and Their Children (MATCH) program. The
MATCH program will be a specialized treatment program that will provide
supervised visitation between inmates and their children and hold classes in
parenting and related subjects.

Requested by: Representatives Holt, Gist, Senator Odom

SUMMIT HOUSE

Sec. 173. (a) Of the funds appropriated to the
Department of Correction, the sum of four hundred thousand dollars ($400,000)
for the 1993-94 fiscal year, and the sum of four hundred thousand dollars
($400,000) for the 1994-95 fiscal year, shall be used to support the program at
Summit House, a community-based residential alternative to incarceration for
mothers and pregnant women convicted of nonviolent crimes, including expansion
of nonresidential day center services.

(b) Of the funds
appropriated to the Department of Correction for the 1993-94 fiscal year, the
sum of one hundred fifty thousand dollars ($150,000) shall be used for planning
and site selection of satellite Summit House programs in Mecklenburg and Wake
Counties. Any funds appropriated by this section for planning and site
selection which are available after completion of the planning and site selection
process may be used by Mecklenburg and Wake Counties to supplement local
resources allocated for site acquisition.

(c) Of the funds
appropriated to the Department of Correction for the 1994-95 fiscal year, the
sum of five hundred thousand dollars ($500,000) shall be used for the sharing
of operating costs of satellite Summit House programs in Mecklenburg and Wake
Counties. The funds appropriated for operating costs of the satellite
programs in Mecklenburg and Wake Counties are in addition to other resources
available to those programs.

(d) Each fiscal year,
Summit House shall report quarterly to the Joint Legislative Commission on
Governmental Operations on the expenditure of State appropriations and on the
effectiveness of the program, including information on the number of clients
served, the number of clients who have their probation revoked, and the number
of clients who successfully complete the program while housed at Summit
House. For the 1993-94 fiscal year, Summit House shall report to the
Joint Legislative Commission on Governmental Operations on the progress of the
planning and site selection process for the satellite programs funded by this
section. For the 1994-95 fiscal year, Summit House shall report to the
Joint Legislative Commission on Governmental Operations on the expansion of its
program into Mecklenburg and Wake Counties.

Requested by: Senator Odom, Representatives Holt, Gist

HARRIET HOUSE

Sec. 174. Of the funds appropriated to the
Department of Correction, the sum of two hundred thousand dollars ($200,000)
for the 1993-94 fiscal year shall be used to support the programs of Harriet
House, a transitional home for female ex-offenders and their children.
Harriet House shall report quarterly to the Joint Legislative Commission on
Governmental Operations on the expenditure of State appropriations and on the
effectiveness of the program including information on the number of clients
served and the number of clients who successfully complete the Harriet House
program.

Requested by: Senator Odom, Representatives Holt, Gist

INMATE INCENTIVE PAY

Sec. 175. G.S. 148-18(a) reads as rewritten:

"(a) Prisoners employed in
prison enterprises shall be compensated at hourly rates fixed by the
Department of Correction's rules and regulations, or on the basis of
production quotas established by prison enterprises, for work performed;
provided, that no prisoner working for prison enterprises shall be paid more
than one dollar ($1.00) three dollars ($3.00) per day from funds
made available by the Prison Enterprises Fund.

Prisoners employed other than by prison enterprises and those
involved in the maintenance and housekeeping of the prison system, shall be
compensated at rates fixed by the Department of Correction's rules and
regulations; provided, that no prisoner so paid shall receive more than one
dollar ($1.00) per day. The source of wages and allowances provided
inmates who are not employed by prison enterprises shall be funds provided by
the Department of Transportation to the Department of Correction for this
purpose. The provisions of this subsection shall not apply to wages paid
by private prison enterprises conducted pursuant to G.S. 148-70."

Requested by: Senator Odom

PRIVATE CONFINEMENT FACILITIES

Sec. 176. No for-profit, privately owned or
operated confinement facilities may be added to the State prison system unless
approved by the General Assembly. Notwithstanding the provisions of this
section or any other provision of law, the Secretary of Correction may issue a
request for proposal or employ other appropriate bidding process or procedure
to determine contract terms or conditions under which private for-profit or
nonprofit firms would offer to provide and operate treatment centers at various
locations across the State totalling 500 beds for prisoners committed to the
custody of the Department of Correction who are diagnosed as needing treatment
for alcohol or drug abuse. The State may continue its existing contracts
with private, nonprofit firms to provide or operate work and study release
centers for women and for youth.

The solicitation of bids for alcohol or drug treatment
centers does not authorize the Secretary of Correction to enter into contracts
with private for-profit or nonprofit firms to provide and operate such
treatment centers. The Secretary of Correction shall report the results
of the solicitation of bids to the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Chairs of the House and Senate Appropriations
Committees, the Chairs of the House and Senate Appropriations Subcommittees on
Justice and Public Safety, the Joint Legislative Commission on Governmental
Operations, and the Fiscal Research Division by April 15, 1994.

Requested by: Representatives Holt, Gist, Senator Odom

CONSOLIDATION OF PRISON FACILITIES

Sec. 177. In order to begin the consolidation of
smaller prison units into a lesser number of facilities, the Department of
Correction shall develop and implement plans to close Granville, Halifax, Person,
Warren, and Vance prison units and replace them with appropriate facilities to
be recommended by the Department.

Requested by: Representatives Holt, Gist, Senator Odom

REASONABLE AUDIT FEES AND ACCESS
TO INMATE MEDICAL RECORDS

Sec. 178. (a) Any hospital in the State that
provides medical care or treatment to an inmate in the custody of the
Department of Correction shall permit the Department or any of its agents to
review or audit those medical records upon request. The hospital may charge
no more than reasonable fees for allowing such review or audit for providing
necessary copies of bills or charges or information related to bills or charges
and may not impose any unreasonable conditions or restrictions upon the access
to those medical records.

(b) Effective upon
ratification of this act, Chapter 131E of the General Statutes is amended by
adding a new section to read:

"§
131E-99.2. Inmate medical records.

Notwithstanding any other provision of law, a hospital
does not breach patient confidentiality by providing the Department of
Correction with the medical records of inmates who receive medical treatment at
the hospital while in the custody of the Department. A hospital complying
with a request from the Department of Correction or its agent for a copy of the
medical records of an inmate who received medical services while in custody
shall be immune from liability in any civil action for the release of the
inmate's medical record."

Requested by: Senator Odom, Representatives Holt, Gist

COMMUNITY CORRECTIONS PROGRAMS

Sec. 178.1. It is the intent of the General
Assembly to consider action during 1994 upon the recommendation of the
Government Performance Audit Committee to transfer the Community Service Work
Program from the Department of Crime Control and Public Safety to the
Department of Correction and to consolidate all community corrections programs
under a single administrative structure. The 1993 General Assembly shall
further evaluate the advantages and disadvantages of such a transfer and
consolidation, and the specific ways in which to implement a transfer and
consolidation, and shall consider action upon the recommendation during its
1994 Regular Session.

PART 20. DEPARTMENT OF CRIME
CONTROL AND PUBLIC SAFETY

Requested by: Senator Odom, Representatives Holt, Gist

REPORT ON COMMUNITY SERVICE
WORKERS

Sec. 179. The Department of Crime Control and
Public Safety shall report quarterly in the 1993-94 fiscal year and the 1994-95
fiscal year to the Joint Legislative Commission on Governmental Operations and
the Fiscal Research Division on the number of community service workers who
were available during each month of the time period preceding that report to
perform repairs and maintenance of the parks and when and where they were
available.

Requested by: Senator Odom, Representatives Holt, Gist

RAPE VICTIMS ASSISTANCE PROGRAM

Sec. 180. (a) Notwithstanding G.S. 143-12 or any
other provision of law, the Department of Crime Control and Public Safety may
utilize up to one hundred fifty thousand dollars ($150,000) of funds received,
but not used, from the contingency and emergency fund in order to liquidate
unpaid invoices for hospital emergency room services provided to rape victims
and to provide rape evidence collection kits to hospital emergency rooms.

(b) This section becomes
effective June 30, 1993.

Requested by: Senator Odom, Representatives Holt, Gist

NATIONAL GUARD DISASTER TRAINING

Sec. 181. (a) G.S. 166A-6 is amended by adding a
new subsection to read:

"(d)In
preparation for a state of disaster, with the concurrence of the Council of
State, the Governor may use contingency and emergency funds as necessary and
appropriate for National Guard training in preparation for disasters."

(b) This section is
effective upon ratification.

Requested by: Senators Lee, Odom, Representatives Holt,
Gist

REPORT BY HIGHWAY PATROL DIVISION

Sec. 182. The Department of Crime Control and
Public Safety, Highway Patrol Division, shall prepare a written report to the
Senate and House Appropriations Committees on Justice and Public Safety and to
the Joint Appropriations Committee on Transportation on the following:

(1) Development of a
long-range staffing plan, including optimum patrol strength;

(2) Assignment of troopers
to counties, including a plan for the revision of county assignments that
reflects overall staffing levels;

(3) Development of a plan
for reciprocity with local law enforcement agencies that specifies the number
of local law enforcement officers eligible to participate in training offered
by the Division;

(4) Justification of the
use of troopers on special assignment to provide security services at special
and public events, including sporting events, and the development of a rate of
reimbursement for services provided at special and public events; and

By April 30, 1994, the Department of
Crime Control and Public Safety, Highway Patrol Division, shall provide copies
of the report to the Senate and House Appropriations Committees on Justice and
Public Safety and to the Joint Appropriations Committee on Transportation, and
to the Fiscal Research Division of the Legislative Services Office. The
Division shall be available to present the report to the Senate and House
Appropriations Committees on Justice and Public Safety and to the Joint
Appropriations Committee on Transportation within five days of the convening of
the Joint Appropriations Committee. The Senate and House Appropriations
Committees on Justice and Public Safety and the Joint Appropriations Committee
on Transportation shall meet within five days of the convening of the Joint
Appropriations Committee to receive the report required by this section.

Requested by: Representatives Holt, Gist, Senator Odom

REPORT ON THE CRIME VICTIMS
COMPENSATION FUND

Sec. 183. The Department of Crime Control and
Public Safety shall report annually to the Senate and House Appropriations Base
Budget Committees on Justice and Public Safety and the Fiscal Research Division
on the administrative expenditures of the North Carolina Crime Victims
Compensation Fund.

Requested by: Representatives Holt, Gist, Senator Odom

LEGISLATIVE REVIEW OF DRUG LAW
ENFORCEMENT AND OTHER GRANTS

Sec. 184. (a) Section 1303(4) of the Omnibus Crime
Control and Safe Streets Act of 1968 provides that State applications for drug law
enforcement grants are subject to review by the State legislature or its
designated body.

(b) The North Carolina
General Assembly hereby provides that State applications for grants under the
State and Local Law Enforcement Assistance Act of 1986, Part M of the Omnibus
Crime Control and Safe Streets Act of 1968 as enacted by Subtitle K of
P.L. 99-570, the Anti-Drug Abuse Act of 1986, are subject to review by
the Joint Legislative Commission on Governmental Operations if at the time of
review the General Assembly is not in session. Any State agency
submitting a grant application for review shall also report to the House
Appropriations Subcommittee on Justice and Public Safety and to the Senate
Appropriations Committee on Justice and Public Safety with regard to the grant.

(c) Unless a State
statute provides a different forum for review, when a federal law or regulation
provides that a State application for a grant must be reviewed by the State
legislature or its designated body and at the time of the review the General
Assembly is not in session, that application shall be reviewed by the Joint
Legislative Commission on Governmental Operations. Any State agency
submitting a grant application for review shall also report to the House Appropriations
Subcommittee on Justice and Public Safety and to the Senate Appropriations
Committee on Justice and Public Safety with regard to the grant.

Requested by: Representatives Holt, Gist, Senator Odom

AUTOMATED ADMINISTRATION OF THE
CRIME VICTIMS COMPENSATION FUND

Sec. 185. The Department of Crime Control and
Public Safety shall develop or acquire software to automate the system of
claims and reimbursement administration for the Crime Victims Compensation
Fund. The automated system shall have among its capabilities the ability
to track individual applications for reimbursement from the initial filing of
the claim through the disposition of the claim, including the status of claims
investigations and third-party reimbursements. The Department of Crime
Control and Public Safety shall submit a report to the House and Senate
Appropriations Committees on Justice and Public Safety and to the Fiscal
Research Division by March 31, 1994, that identifies the automated system
installed by the Department, documents the status of bringing the claims
management and reimbursement system on-line, and documents the ability of the
system to track administration and reimbursement of claims.

PART 21. JUDICIAL DEPARTMENT

Requested by: Senator Odom, Representatives Holt, Gist

AOC NETWORKTRANSFER STUDY

Sec. 186. The Information Resource Management
Commission and the Administrative Office of the Courts jointly shall prepare a
written evaluation of the costs, benefits, and feasibility of transferring
ownership of the Administrative Office of the Courts' network back to the
ownership and management of the State Telecommunications System. The
evaluation shall include an independent study to determine whether the
incremental operating costs (including incremental overhead costs) are lower
under the State Telecommunications System and whether a service level agreement
between the State Telecommunications System and the Administrative Office of
the Courts that meets the Administrative Office of the Courts' requirements for
network service can be developed. The Information Resource Management
Commission and the Administrative Office of the Courts jointly shall present
the written evaluation to the Joint Legislative Commission on Governmental
Operations not later than December 31, 1993.

Requested by: Senator Odom, Representatives Holt, Gist

INDIGENT PERSONS' ATTORNEY FEE
FUND

Sec. 187. (a) Effective July 1, 1993, the
Administrative Office of the Courts shall each year of the 1993-95 biennium
place the sum of three million eight hundred thousand dollars ($3,800,000) from
the Indigent Persons' Attorney Fee Fund in a reserve for capital cases and for
transcripts, professional examinations, and expert witness fees. The
Administrative Office of the Courts shall allot these funds as needed for these
purposes and for unanticipated demands on the fund.

(b) Effective July 1,
1993, the Administrative Office of the Courts shall, for each year of the
biennium, allot the sum of eleven million five hundred thousand dollars
($11,500,000) from the Indigent Persons' Attorney Fee Fund for adult, juvenile,
and guardian ad litem cases for the 1993-94 and 1994-95 fiscal years to
each judicial district in which the superior and district court districts are
coterminous, and otherwise by county, according to the caseload of indigent
persons who were not represented by the public defender in the districts or
counties during 1992-93 and 1993-94, respectively.

The Administrative Office of the Courts shall notify all
senior resident superior court judges, all chief district court judges, and the
clerk of superior court within the district or county immediately after the
allotment is made and shall regularly notify them how much remains for the
district or county.

The senior resident superior court judge and the chief
district court judge of each district or county shall ask all judges holding
court within the district or county: (i) to take into consideration the
amount of money allotted at the beginning of the fiscal year and the amount of
money remaining in the allotment when they award counsel fees to attorneys of
indigent persons, and (ii) to make an effort to award fees equally and justly
for legal services provided. The clerk of superior court for each county
shall ensure that all judges holding court within the county receive this
request from the senior resident superior court judge and the chief district
court judge.

(c) If the funds allotted
pursuant to subsection (b) of this section are depleted in a district or county
prior to the end of the fiscal year, the Administrative Office of the Courts
shall allot the remaining funds from the Indigent Persons' Attorney Fee Fund in
the same manner as provided in subsection (b) of this section. However,
if necessary and appropriate due to unusual and unanticipated circumstances
occurring in the current year, the Administrative Office of the Courts may
allocate funds to a district or county in a manner calculated to result in the
reasonably fair distribution of remaining funds. Such funds shall be subject
to the limitations and directions set out in subsection (b) of this section.

(d) If the funds allotted
pursuant to subsection (c) of this section are depleted in a district or county
prior to the end of the fiscal year, the Administrative Office of the Courts is
authorized to resume payments in such districts or counties only if and when it
is reasonably determined that the total projected expenditures will be less
than the total approved budget for the Indigent Persons' Attorney Fee Fund for
the fiscal year.

Requested by: Senator Odom, Representatives Holt, Gist

SPECIAL CAPITAL CASE REHEARING
FUND

Sec. 188. (a) There is continued in the Judicial
Department the nonreverting special fund known as "The Special Capital
Case Rehearing Fund". The funds shall be used to provide for
resentencing hearings, related appeals, and postconviction hearings required by
the decisions of the United States Supreme Court in McKoy v. North Carolina,
decided March 5, 1990, and of the Supreme Court of North Carolina upon remand
of that case, including the payment of attorneys' fees and related expenses for
representation of indigent persons as specified in Subchapter IX of Chapter 7A
of the General Statutes. The Special Capital Case Rehearing Fund shall terminate,
and all funds remaining in it shall be transferred to the Indigent Persons'
Attorney Fee Fund, when the Director of the Administrative Office of the Courts
certifies to the State Controller that all reasonably foreseeable resentencing
hearings, related appeals, and postconviction hearings have been substantially
completed.

(b) Of the funds
appropriated from the General Fund to the Judicial Department for the 1993-95
biennium, the sum of one million forty-eight thousand four hundred twenty-four
dollars ($1,048,424) for the 1993-94 fiscal year and the sum of one million
forty-eight thousand four hundred twenty-four dollars ($1,048,424) for the
1994-95 fiscal year may be used for the purposes indicated in this section.

Requested by: Senator Odom, Representatives Holt, Gist

COMMUNITY PENALTIES PROGRAMS

Sec. 189. (a) Of the funds appropriated from the
General Fund to the Judicial Department for the 1993-95 biennium to conduct the
community penalties programs, the sum of one million nine hundred eighteen
thousand nine hundred twelve dollars ($1,918,912) for the 1993-94 fiscal year
and the sum of one million nine hundred eighteen thousand nine hundred twelve
dollars ($1,918,912) for the 1994-95 fiscal year may be allocated by the
Judicial Department in any amount among existing community penalties programs
or may be used to establish new community penalties programs.

(b) The Judicial
Department shall report annually to the Senate and House Appropriations
Subcommittees on Justice and Public Safety and to the Fiscal Research Division
on the administrative expenditures of the community penalties programs.

Requested by: Senator Odom, Representatives Holt, Gist

RAPE VICTIM WITNESS COUNSELOR
PROGRAM

Sec. 190. From funds appropriated to the Judicial
Department in the certified budget for the 1993-95 biennium, the Administrative
Office of the Courts may transfer within its budget up to twenty-five thousand
dollars ($25,000) for the 1993-94 fiscal year and up to twenty-five thousand
dollars ($25,000) for the 1994-95 fiscal year to support the existing Rape
Victim Witness Counselor Program.

Requested by: Senator Odom, Representatives Holt, Gist

GRANT MATCHING FUNDS

Sec. 191. From the funds appropriated to the
Judicial Department in the certified budget for the 1993-95 biennium, the
Administrative Office of the Courts may transfer within its budget for each
fiscal year up to two hundred thousand dollars ($200,000) to match any grants
awarded to the Judicial Department from non-State funds.

In addition to the duties prescribed in G.S. 7A-343, the
Director shall also:

(1) Supervise and
coordinate the operation of the laws and regulations concerning the assignment
of legal counsel for indigent persons under Subchapter IX of this Chapter to
the end that all indigent persons are adequately represented;

(2) Advise and cooperate
with the offices of the public defenders as needed to achieve maximum
effectiveness in the discharge of the defender's responsibilities;

(3) Collect data on the
operation of the assigned counsel and the public defender systems, and make
such recommendations to the General Assembly for improvement in the operation
of these systems as appear to him to be appropriate; and

(4) Accept and utilize
federal or private funds, as available, to improve defense services for the
indigent, including indigent juveniles alleged to be delinquent or
undisciplined. To facilitate processing of juvenile and other indigent
cases, the administrative officer is further authorized, in any district
court district, district or set of districts as defined in G.S.
7A-41.1(a), with the approval of the chief district court judge, judge
for cases in the district court division and the approval of the senior
resident superior court judge for cases in the superior court division, to
engage the services of a particular attorney or attorneys to provide
specialized representation on a full-time or part-time basis."

Requested by: Senator Odom, Representatives Holt, Gist

TRANSFER OF EQUIPMENT AND SUPPLY
FUNDS

Sec. 193. Funds appropriated to the Judicial
Department in the 1993-95 biennium for equipment and supplies shall be
certified in a reserve account. The Administrative Office of the Courts
shall have the authority to transfer these funds to the appropriate programs
and between programs as the equipment priorities and supply consumptions occur
during the operating year. These funds may not be expended for any other
purpose. The Administrative Office of the Courts shall make quarterly
reports on transfers made pursuant to this section to the Joint Legislative
Commission on Governmental Operations and the Chairs of the Senate and House
Appropriations Subcommittees on Justice and Public Safety.

Requested by: Senator Odom, Representatives Holt, Gist

ADDITIONAL PUBLIC AND APPELLATE
DEFENDER PERSONNEL

Sec. 194. From funds appropriated to the Indigent
Persons' Attorney Fee Fund in the Judicial Department for the 1993-95 biennium,
the Administrative Office of the Courts may use up to four hundred sixty-six
thousand two hundred thirty dollars ($466,230) in the 1993-94 fiscal year and
up to four hundred seventy-one thousand nine hundred eighty-nine dollars
($471,989) in the 1994-95 fiscal year for salaries, benefits, and related
expenses to be allocated as follows:

(1) $217,060 in the
1993-94 fiscal year and $234,478 in the 1994-95 fiscal year to establish up to
four new assistant public defenders;

(2) $140,640 in the 1993-94
fiscal year and $119,555 in the 1994-95 fiscal year to establish up to five new
public defender secretaries; and

(3) $108,530 in the
1993-94 fiscal year and $117,478 in the 1994-95 fiscal year to establish up to
two new assistant appellate defenders.

Sec. 195. (a) Notwithstanding the provisions of
Section 78 of Chapter 689 of the 1991 Session Laws, the Judicial Department may
transfer up to the sum of one million one hundred thousand dollars ($1,100,000)
from the Special Capital Case Rehearing Fund, established in Section 2 of
Chapter 742 of the 1991 Session Laws, to the Indigent Persons' Attorney Fee
Fund by June 30, 1994, to pay the obligations incurred by the Indigent Persons'
Attorney Fee Fund.

(b) This section is
effective upon ratification.

Requested by: Representatives Holt, Gist, Fitch, Senator
Odom

EMERGENCY SPECIALSUPERIOR
COURT JUDGES

Sec. 199. Article 7 of Chapter 7A of the General
Statutes is amended by adding a new section to read:

(a)Any justice
or judge of the appellate division of the General Court of Justice who:

(1)Retires
under the provisions of the Consolidated Judicial Retirement Act, Article 4 of
Chapter 135 of the General Statutes, or who is eligible to receive a retirement
allowance under that act;

(2)Has not
reached the mandatory retirement age specified in G.S. 7A-4.20;

(3)Has served
at least five years as a superior court judge or five years as a justice or
judge of the appellate division of the General Court of Justice, or any
combination thereof, whether or not eligible to serve as an emergency justice
or judge of the appellate division of the General Court of Justice; and

(4)Whose
judicial service ended within the preceding 10 years;

may apply to the Governor for
appointment as an emergency special superior court judge in the same manner as
is provided for application as an emergency superior court judge in G.S.
7A-53. If the Governor is satisfied that the applicant meets the
requirements of this section and is physically and mentally able to perform the
duties of a superior court judge, the Governor shall issue a commission
appointing the applicant as an emergency special superior court judge until the
applicant reaches the mandatory retirement age for superior court judges
specified in G.S. 7A-4.20.

(b)Any
emergency special superior court judge appointed as provided in this section
shall:

(1)Have the
same powers and duties, when duly assigned to hold court, as provided for an
emergency superior court judge by G.S. 7A-48;

(2)Be subject
to assignment in the same manner as provided for an emergency superior court
judge by G.S. 7A-46;

(3)Receive the
same compensation, expenses, and allowances, when assigned to hold court, as an
emergency superior court judge as provided by G.S. 7A-52(b);

(4)Be subject
to the provisions and requirements of the Canons of Judicial Conduct; and

(5)Not engage
in the practice of law during any period for which the emergency special
superior court judgeship is commissioned. However, this subdivision shall
not be construed to prohibit an emergency special superior court judge
appointed pursuant to this section from serving as a referee, arbitrator, or
mediator, during service as an emergency special superior court judge when the
service does not conflict with or interfere with the emergency special superior
court judge's judicial service in emergency status.

(c)Upon
reaching mandatory retirement age for superior court judges as set forth in
G.S. 7A-4.20, any emergency special superior court judge appointed pursuant to
this section, whose commission has expired, may be recalled as a recalled
emergency special superior court judge to preside over any regular or special
session of the superior court under the following circumstances:

(1)The judge
shall consent to the recall;

(2)The Chief
Justice may order the recall;

(3)Prior to
ordering recall, the Chief Justice shall be satisfied that the recalled judge
is capable of efficiently and promptly discharging the duties of the office to
which recalled;

(4)Jurisdiction
of a recalled emergency special superior court judge is as set forth in G.S.
7A-48;

(5)Orders of
recall and assignment shall be in writing and entered upon the minutes of the
court to which assigned; and

(6)Compensation,
expenses, and allowances of recalled emergency special superior court judges
are the same as for recalled emergency superior court judges under G.S.
7A-52(b).

(d)Any former
justice or judge of the appellate division of the General Court of Justice who
otherwise meets the requirements of subsection (a) of this section to be
appointed an emergency special superior court judge but has already reached the
mandatory retirement age for superior court judges set forth in G.S. 7A-4.20 on
retirement may, in lieu of serving as an emergency judge of the court from
which he retired, apply to the Governor to be appointed as an emergency special
superior court judge as provided in this section. If the Governor issues
a commission to the applicant, the retired justice or judge is subject to
recall as an emergency special superior court judge as provided in subsection
(c) of this section.

(e)No justice
or judge appointed as an emergency special superior court judge or subject to
recall as provided in this section shall, during the period so appointed or
subject to recall, contemporaneously serve as an emergency justice or judge of
the appellate division of the General Court of Justice."

Requested by: Representatives Holt, Gist, Senator Odom

STUDY OF MEDIATION PROGRAMS

Sec. 200. The Administrative Office of the Courts
shall study the effectiveness of the Child Custody and Visitation Mediation
Programs, the Court-Ordered Non-Binding Arbitration Programs, and the Dispute
Mediation Programs, and shall report its findings to the General Assembly by
April 15, 1994, including recommendations on whether those programs should be
expanded and in what manner they should be expanded.

Requested by: Senator Plyler, Representative Barnes

SENTENCING COMMISSION EXTENDED

Sec. 200.1. (a) Section 8 of Chapter 1076 of the
1989 Session Laws, as amended by Chapters 812 and 816 of the 1991 Session Laws
and Chapter 253 of the 1993 Session Laws, reads as rewritten:

"Sec. 8. This act is effective upon ratification,
and shall expire August 1, 1993. July 1, 1994."

(b) G.S. 164-38 reads as
rewritten:

"§ 164-38.
Terms of members; compensation; expenses.

The terms of existing members shall expire on June 30, 1992.
1993. New members shall be appointed or the existing members
reappointed by the appointing authorities to serve until July 1, 1993, 1994,
unless they resign or are removed. Members serving by virtue of
elective or appointive office or as designees of such officeholders may serve
only so long as the officeholders hold those respective offices. Members
appointed by the Speaker of the House and the President Pro Tempore of the
Senate may be removed by the appointing authority without cause.
Vacancies occurring before the expiration of a term shall be filled in the
manner provided for the members first appointed. A member of the Commission
may be removed only for disability, neglect of duty, incompetence, or
malfeasance in office. Before removal, the member is entitled to a
hearing. Effective with respect to members designated on or after July 1,
1992, a person making a designation pursuant to G.S. 164-37 may not make
another designation, except that the person's successor in elective or
appointive office may make a new designation.

The Commission members shall receive no salary for
serving. All Commission members shall receive necessary subsistence and
travel expenses in accordance with the provisions of G.S. 120-3.1, 138-5, and
138-6 as applicable."

Requested by: Senator Odom

REGIONAL MEDIATION CENTER IN PITT
COUNTY TO PROVIDE MEDIATION SERVICES TO EASTERN NORTH CAROLINA

Sec. 200.2. Of the funds appropriated to the
Judicial Department from the General Fund for the 1993-94 fiscal year, the sum
of forty thousand dollars ($40,000) may be used for The Mediation Center of
Pitt County, Inc., a dispute settlement center in Pitt County, to establish a
regional mediation and dispute settlement center to serve Eastern North
Carolina.

"(b) In addition to the
compensation or retirement allowance he the judge would otherwise
be entitled to receive by law, each emergency judge of the district or superior
court who is assigned to temporary active service by the Chief Justice shall be
paid by the State his the judge's actual expenses, plus one
hundred fifty dollars ($150.00) two hundred dollars ($200.00) for
each day of active service rendered upon recall. No recalled retired
trial judge shall receive from the State total annual compensation for judicial
services in excess of that received by an active judge of the bench to which
the judge is recalled."

Requested by: Senator Odom

TRANSFER CASWELL AND PERSON
COUNTIES TO NEWLY CREATED JUDICIAL AND PROSECUTORIAL DISTRICTS 9A

Sec. 200.4. (a) G.S. 7A-41(a) reads as rewritten:

"(a) The counties of the
State are organized into judicial divisions and superior court districts, and
each superior court district has the counties, and the number of regular
resident superior court judges set forth in the following table, and for
districts of less than a whole county, as set out in subsection (b) of this
section:

Superior

Judicial
Court
No. of Resident

Division
District
Counties
Judges

First
1
Camden,
Chowan,
2

Currituck,

Dare, Gates,

Pasquotank,

Perquimans

2
Beaufort,
Hyde,
1

Martin,

Tyrrell, Washington

3A
Pitt
2

3B
Carteret,
Craven,
1

Pamlico

4A
Duplin,
Jones,
1

Sampson

4B
Onslow
1

5
New
Hanover,
3

Pender

6A
Halifax
1

6B
Bertie,
Hertford,
1

Northampton

7A
Nash
1

7B
(part of
Wilson,
1

part of Edgecombe,

see subsection (b))

7C
(part of Wilson,
1

part of Edgecombe,

see subsection (b))

8A
Lenoir and
Greene
1

8B
Wayne
1

Second
9
Franklin,
Granville,
2

Person,

Vance, Warren

9APerson, Caswell1

10A
(part of
Wake,
1

see subsection (b))

10B
(part of
Wake,
2

see subsection (b))

10C
(part of
Wake,
1

see subsection (b))

10D
(part of
Wake,
1

see subsection (b))

11
Harnett,
Johnston,
2

Lee

12A
(part of
Cumberland,
1

see subsection (b))

12B
(part of
Cumberland,
1

see subsection (b))

12C
(part of
Cumberland,
2

see subsection (b))

13
Bladen, Brunswick,
2

Columbus

14A
(part of
Durham,
1

see subsection (b))

14B
(part of
Durham,
3

see subsection (b))

15A
Alamance
1

15B
Orange,
Chatham
1

16A
Scotland,
Hoke
1

16B
Robeson
2

Third
17A
Caswell, Rockingham
2

17B
Stokes,
Surry
1

18A
(part of
Guilford,
1

see subsection (b))

18B
(part of
Guilford,
1

see subsection (b))

18C
(part of
Guilford,
1

see subsection (b))

18D
(part of
Guilford,
1

see subsection (b))

18E
(part of
Guilford,
1

see subsection (b))

19A
Cabarrus
1

19B
Montgomery,
1

Randolph

19C
Rowan
1

20A
Anson,
Moore,
2

Richmond

20B
Stanly,
Union
1

21A
(part of
Forsyth,
1

see subsection (b))

21B
(part of
Forsyth,
1

see subsection (b))

21C
(part of
Forsyth,
1

see subsection (b))

21D
(part of
Forsyth,
1

see subsection (b))

22
Alexander,
Davidson,
2

Davie, Iredell

23
Alleghany,
Ashe,
1

Wilkes, Yadkin

Fourth
24
Avery, Madison,
1

Mitchell,

Watauga, Yancey

25A
Burke,
Caldwell
2

25B
Catawba
1

26A
(part of
Mecklenburg,
2

see subsection (b))

26B
(part of
Mecklenburg,
2

see subsection (b))

26C
(part of
Mecklenburg,
2

see subsection (b))

27A
Gaston
2

27B
Cleveland,
Lincoln
1

28
Buncombe
2

29
Henderson,
2

McDowell, Polk,

Rutherford,

Transylvania

30A
Cherokee,
Clay,
1

Graham, Macon,

Swain

30B
Haywood,
Jackson
1."

(b) The Governor shall
appoint the superior court judge for the position created by subsection (a) of
this section, whose term shall expire December 31, 1994. This appointed
judge's successor shall be chosen in the 1994 general election.

(c) One superior court
reporter position shall be transferred from current District 17A to newly
created District 9A.

(d) Subsections (a) through (c) of this
section become effective November 1, 1993, or fifteen days after the date upon
which subsections (a) and (b) of this section are approved under Section 5 of
the Voting Rights Act of 1965, whichever is later.

(e) G.S. 7A-133 reads as
rewritten:

"§ 7A-133.
Numbers of judges by districts; numbers of magistrates and additional seats of
court, by counties.

Each district court district shall have the numbers of judges
and each county within the district shall have the numbers of magistrates and
additional seats of court, as set forth in the following table:

Additional

Magistrates
Seats of

District
Judges
County
Min.-Max.
Court

1
3
Camden
1 2

Chowan
2 3

Currituck
1 2

Dare
3 8

Gates
2 3

Pasquotank
3 4

Perquimans
2 3

2
3
Martin
5 8

Beaufort
4 8

Tyrrell
1 3

Hyde
2 4

Washington
3 4

3A
3
Pitt
10 12
Farmville

Ayden

3B
4
Craven
7 10
Havelock

Pamlico
2 3

Carteret
5 8

4
6
Sampson
6 8

Duplin
9 11

Jones
2 3

Onslow
8 14

5
6
New Hanover
6 11

Pender
4 6

6A
2
Halifax
9
14
Roanoke

Rapids,

Scotland Neck

6B
2
Northampton
5 6

Bertie
4 5

Hertford
5 6

7
6
Nash
7 10
Rocky Mount

Edgecombe
4
6
Rocky Mount

Wilson
4 6

8
5
Wayne
5 11
Mount Olive

Greene
2 4

Lenoir
4 10
La Grange

9
54Person34

Granville
3 7

Vance
3 5

Warren
3 4

Franklin
3 6

9A2Person34

Caswell25

10
11
Wake
12
20
Apex,

Wendell,

Fuquay-

Varina,

Wake Forest

11
6
Harnett
7 11
Dunn

Johnston
10
12
Benson,

Clayton

and Selma

Lee
4 6

12
6
Cumberland
10 17

13
4
Bladen
4 6

Brunswick
4 7

Columbus
6
8
Tabor City

14
5
Durham
8 12

15A
3
Alamance
7
10
Burlington

15B
3
Orange
4
11
Chapel Hill

Chatham
3 8
Siler City

16A
2
Scotland
3 5

Hoke
4 5

16B
5
Robeson
8
16
Fairmont,

Maxton,

Pembroke,

Red Springs,

Rowland,

St. Pauls

17A
32Caswell 25

Rockingham
4
9
Reidsville,

Eden,

Madison

17B
3
Stokes
2 5

Surry
5 8
Mt. Airy

18
10
Guilford
20
26
High Point

19A
2
Cabarrus
5
9
Kannapolis

19B
3
Montgomery
2 4

Randolph
5
8
Liberty

19C
2
Rowan
5 10

20
6
Stanly
5 6

Union
4 6

Anson
4 5

Richmond
5
6
Hamlet

Moore
5 8
Southern

Pines

21
7
Forsyth
3
15
Kernersville

22
6
Alexander
2 3

Davidson
7
10
Thomasville

Davie
2 3

Iredell
4 8
Mooresville

23
3
Alleghany
1 2

Ashe
3 4

Wilkes
4 6

Yadkin
3 5

24
3
Avery
3 4

Madison
4 5

Mitchell
3 4

Watauga
4 6

Yancey
2 4

25
7
Burke
4 7

Caldwell
4 7

Catawba
6 9
Hickory

26
13
Mecklenburg
15 26

27A
5
Gaston
11 20

27B
4
Cleveland
5 8

Lincoln
4 6

28
5
Buncombe
6 15

29
4
Henderson
4 6

McDowell
3 4

Polk
3 4

Rutherford
6 8

Transylvania
2 4

30
3
Cherokee
3 4

Clay
1 2

Graham
2 3

Haywood
5
7
Canton

Jackson
3 4

Macon
3 4

Swain
2 3."

(f) The two
district court judgeships created by subsection (e) of this section shall be
filled by the district court judge from current District 9 who resides in
Person County and by the district court judge from current District 17A who
resides in Caswell County. The term of the judge residing in Caswell
County expires December 31, 1994. This judge's successor shall be elected
in the 1994 general election. The term of the judge residing in Person
County expires December 31, 1996. This judge's successor shall be elected
in the 1996 general election.

(g) Secretarial services
for the chief district court judge in newly created District 9A shall be
provided by the secretary of the superior court judge in newly created Superior
Court District 9A, created by subsection (a) of this section.

(h) The magistrates'
positions created by subsection (e) of this section for Person County in newly
created District 9A shall be filled by the magistrates currently serving Person
County in District 9. The magistrates' positions created by subsection
(e) of this section for Caswell County in newly created District 9A shall be
filled by the magistrates currently serving Caswell County in District 17A.

(i) Juvenile
intake, probation, and aftercare services for newly created District 9A shall
be provided by the chief court counselor's office in District 17A. One
such position serving the chief court counselor's office in current District 9
shall be transferred to District 17A to facilitate the provision of juvenile intake,
probation, and aftercare services to newly created District 9A.

(j) Notwithstanding
G.S. 7A-198, district court reporting services for newly created District 9A
shall be provided by electronic recording equipment, freelance court reporters,
or reports assigned from outside the District. The chief district court
judge shall not appoint a court reporter to serve the District.

(k) Subsections (e)
through (j) of this section become effective November 1, 1993, or the date upon
which subsections (e) and (f) of this section are approved under Section 5 of
the Voting Rights Act of 1965, whichever is later.

(l) G.S. 7A-60(a1)
reads as rewritten:

"(a1) The counties of the State are
organized into prosecutorial districts, and each district has the counties and
the number of full-time assistant district attorneys set forth in the following
table:

No. of Full-Time

Prosecutorial
Asst. District

District
Counties
Attorneys

1
Camden, Chowan,
Currituck,
6

Dare, Gates, Pasquotank,

Perquimans

2
Beaufort, Hyde,
Martin,
4

Tyrrell, Washington

3A
Pitt
6

3B
Carteret, Craven,
Pamlico
6

4
Duplin, Jones,
Onslow,
10

Sampson

5
New Hanover,
Pender
9

6A
Halifax
3

6B
Bertie,
Hertford,
3

Northampton

7
Edgecombe, Nash,
Wilson
10

8
Greene, Lenoir,
Wayne
8

9
Franklin, Granville,
8 7

Person, Vance, Warren

9APerson, Caswell2

10
Wake
18

11
Harnett, Johnston,
Lee
8

12
Cumberland
12

13
Bladen, Brunswick,
Columbus
6

14
Durham
9

15A
Alamance
6

15B
Orange,
Chatham
4

16A
Scotland,
Hoke
3

16B
Robeson
7

17A
Caswell, 5 4

Rockingham

17B
Stokes,
Surry
4

18
Guilford
16

19A
Cabarrus,
Rowan
8

19B
Montgomery,
Randolph
4

20
Anson, Moore,
Richmond,
10

Stanly, Union

21
Forsyth
12

22
Alexander, Davidson,
Davie,
10

Iredell

23
Alleghany, Ashe,
Wilkes,
4

Yadkin

24
Avery, Madison,
Mitchell,
3

Watauga, Yancey

25
Burke, Caldwell,
Catawba
10

26
Mecklenburg
22

27A
Gaston
8

27B
Cleveland,
5

Lincoln

28
Buncombe
7

29
Henderson, McDowell,
Polk,
8

Rutherford, Transylvania

30
Cherokee, Clay, Graham,
6

Haywood, Jackson, Macon,

Swain."

(m) The district attorney
position created by subsection (l) of this section shall be filled by
appointment by the Governor. This district attorney's term expires on
December 31, 1994. The successor shall be elected in the 1994 general
election.

(n) The two assistant
district attorney positions for newly created District 9A shall be filled by an
assistant district attorney currently serving Person County in District 9 and
by an assistant district attorney currently serving Caswell County in District
17A.

(o) Subsections (l)
through (n) of this section become effective November 1, 1993, or the date upon
which subsections (l) and (m) of this section are approved under Section 5 of
the Voting Rights Act of 1965, whichever is later.

(p) It is the intent of
the General Assembly that Superior Court District 17A, District Court District
17A, and Prosecutorial District 17A, as altered by this section, shall remain
single-county districts, pursuant to the authority of the General Assembly
under Article IV of the North Carolina Constitution to divide the State into a
convenient number of districts.

Requested by: Senator Odom, Representatives Holt, Gist

ADD ADDITIONAL SUPERIOR COURT
JUDGES/SPECIAL SUPERIOR COURT JUDGES

Sec. 200.5. (a) G.S. 7A-41(a) reads as rewritten:

"(a) The counties of the
State are organized into judicial divisions and superior court districts, and
each superior court district has the counties, and the number of regular
resident superior court judges set forth in the following table, and for
districts of less than a whole county, as set out in subsection (b) of this
section:

Superior

Judicial
Court
No. of Resident

Division
District
Counties
Judges

First
1
Camden,
Chowan,
2

Currituck,

Dare, Gates,

Pasquotank,

Perquimans

2
Beaufort, Hyde,
1

Martin,

Tyrrell, Washington

3A
Pitt
2

3B
Carteret, Craven,
1 2

Pamlico

4A
Duplin, Jones,
1

Sampson

4B
Onslow
1

5
New Hanover,
3

Pender

6A
Halifax
1

6B
Bertie, Hertford,
1

Northampton

7A
Nash
1

7B
(part of Wilson,
1

part of Edgecombe,

see subsection (b))

7C
(part of Wilson,
1

part of Edgecombe,

see subsection (b))

8A
Lenoir and Greene
1

8B
Wayne
1

Second
9
Franklin, Granville,
2

Person,

Vance, Warren

10A
(part of Wake,
12

see subsection (b))

10B
(part of
Wake,
2

see subsection (b))

10C
(part of
Wake,
1

see subsection (b))

10D
(part of
Wake,
1

see subsection (b))

11
Harnett, Johnston,
2

Lee

12A
(part of Cumberland,
1

see subsection (b))

12B
(part of
Cumberland,
1

see subsection (b))

12C
(part of
Cumberland,
2

see subsection (b))

13
Bladen, Brunswick,
2

Columbus

14A
(part of
Durham,
1

see subsection (b))

14B
(part of
Durham,
3

see subsection (b))

15A
Alamance
1 2

15B
Orange,
Chatham
1

16A
Scotland,
Hoke
1

16B
Robeson
2

Third
17A
Caswell,
Rockingham
2

17B
Stokes, Surry
1 2

18A
(part of Guilford,
1

see subsection (b))

18B
(part of Guilford,
1

see subsection (b))

18C
(part of
Guilford,
1

see subsection (b))

18D
(part of Guilford,
1

see subsection (b))

18E
(part of Guilford,
1

see subsection (b))

19A
Cabarrus
1

19B
Montgomery,
1

Randolph

19C
Rowan
1

20A
Anson, Moore,
2

Richmond

20B
Stanly, Union
1 2

21A
(part of Forsyth,
1

see subsection (b))

21B
(part of Forsyth,
1

see subsection (b))

21C
(part of Forsyth,
1

see subsection (b))

21D
(part of
Forsyth,
1

see subsection (b))

22
Alexander, Davidson,
2

Davie, Iredell

23
Alleghany, Ashe,
1

Wilkes, Yadkin

Fourth
24
Avery,
Madison,
1

Mitchell,

Watauga, Yancey

25A
Burke, Caldwell
2

25B
Catawba
1 2

26A
(part of
Mecklenburg,
2

see subsection (b))

26B
(part of
Mecklenburg,
2

see subsection (b))

26C
(part of
Mecklenburg,
2

see subsection (b))

27A
Gaston
2

27B
Cleveland, Lincoln
1

28
Buncombe
2

29
Henderson,
2

McDowell, Polk,

Rutherford,

Transylvania

30A
Cherokee, Clay,
1

Graham, Macon,

Swain

30B
Haywood,
Jackson
1".

(b) The Governor shall
appoint superior court judges for the additional judgeships in superior court
districts 3B, 10A, 15A, 17B, 20B, and 25B. For superior court districts
3B, 15A, and 17B, successors shall be elected in the 1994 general election for
eight-year terms. For superior court district 10A, the successor shall be
elected in the 1994 general election to serve the remainder of the unexpired
term expiring December 31, 1996. For superior court districts 20B and
25B, successors shall be elected in the 1994 general election to serve the
remainder of the unexpired terms expiring December 31, 1998. This is to provide
unstaggered terms for multiple judgeships in the same district.

(c) Subsections (a) and
(b) of this section become effective November 1, 1993, or the date upon which
those subsections are approved under Section 5 of the Voting Rights Act of 1965,
whichever is later.

(d) Effective January 1,
1995, G.S. 7A-41(a), as rewritten by Section 200.4(a) of this act and by
subsection (a) of this section, reads as rewritten:

"(a) The counties of the
State are organized into judicial divisions and superior court districts, and
each superior court district has the counties, and the number of regular
resident superior court judges set forth in the following table, and for
districts of less than a whole county, as set out in subsection (b) of this section:

Superior

Judicial
Court
No. of Resident

Division
District
Counties
Judges

First
1
Camden,
Chowan,
2

Currituck,

Dare, Gates,

Pasquotank,

Perquimans

2
Beaufort,
Hyde,
1

Martin,

Tyrrell, Washington

3A
Pitt
2

3B
Carteret,
Craven,
2

Pamlico

4A
Duplin, Jones,
1

Sampson

4B
Onslow
1

5
New Hanover,
3

Pender

6A
Halifax
1

6B
Bertie,
Hertford,
1

Northampton

7A
Nash
1

7B
(part of
Wilson,
1

part of Edgecombe,

see subsection (b))

7C
(part of
Wilson,
1

part of Edgecombe,

see subsection (b))

8A
Lenoir and
Greene
1

8B
Wayne
1

Second
9
Franklin, Granville,
2

Vance, Warren

9A
Person,
Caswell
1

10A
(part of
Wake,
2

see subsection (b))

10B
(part of
Wake,
2

see subsection (b))

10C
(part of
Wake,
1

see subsection (b))

10D
(part of
Wake,
1

see subsection (b))

11
Harnett, Johnston,
2

Lee

12A
(part of Cumberland,
1

see subsection (b))

12B
(part of
Cumberland,
1

see subsection (b))

12C
(part of
Cumberland,
2

see subsection (b))

13
Bladen,
Brunswick,
2

Columbus

14A
(part of
Durham,
1

see subsection (b))

14B
(part of
Durham,
3

see subsection (b))

15A
Alamance
2

15B
Orange,
Chatham
1

16A
Scotland,
Hoke
1

16B
Robeson
2

Third
17A
Rockingham
2

17B
Stokes,
Surry
2

18A
(part of
Guilford,
1

see subsection (b))

18B
(part of
Guilford,
1

see subsection (b))

18C
(part of
Guilford,
1

see subsection (b))

18D
(part of
Guilford,
1

see subsection (b))

18E
(part of
Guilford,
1

see subsection (b))

19A
Cabarrus
1

19B
Montgomery,
1

Randolph

19C
Rowan
1

20A
Anson, Moore,
2

Richmond

20B
Stanly,
Union
2

21A
(part of
Forsyth,
1

see subsection (b))

21B
(part of
Forsyth,
1

see subsection (b))

21C
(part of
Forsyth,
1

see subsection (b))

21D
(part of
Forsyth,
1

see subsection (b))

22
Alexander,
Davidson,
2

Davie, Iredell

23
Alleghany, Ashe,
1

Wilkes, Yadkin

Fourth
24
Avery, Madison,
1

Mitchell,

Watauga, Yancey

25A
Burke, Caldwell
2

25B
Catawba
2

26A
(part of
Mecklenburg,
2

see subsection (b))

26B
(part of
Mecklenburg,
2

see subsection (b))

26C
(part of Mecklenburg,
2

see subsection (b))

27A
Gaston
2

27B
Cleveland,
Lincoln
1 2

28
Buncombe
2

29
Henderson,
2

McDowell, Polk,

Rutherford,

Transylvania

30A
Cherokee,
Clay,
1

Graham, Macon,

Swain

30B
Haywood,
Jackson
1".

(e) The additional
superior court judge for superior court district 27B shall be elected in the
1994 general election for an eight-year term.

(f) Subsection (d)
of this section becomes effective January 1, 1995, but the election shall be
held in 1994 as provided by law.

(g) .S. 7A-45.1(a) reads
as rewritten:

"(a) Effective November
1, 1993, the Governor may appoint two special superior court judges to serve
terms expiring December 31, 1998. Successors to the special superior
court judges appointed pursuant to this subsection shall be appointed to
four-year terms. The Governor may appoint two special superior
court judges. A special judge takes the same oath of office and
is subject to the same requirements and disabilities as are or may be
prescribed by law for regular judges of the superior court, save the
requirement of residence in a particular district. Appointments made under
this section shall be to terms of office beginning August 1, 1987, and expiring
December 31, 1990."

(h) Nothing in subsection
(g) of this section shall affect the term of office of the special superior
court judge whose term was extended by Section 124 of Chapter 1066 of the 1989
Session Laws.

Requested by: Senator Odom, Representatives Holt, Gist

ADD ADDITIONAL DISTRICT COURT
JUDGES

Sec. 200.6. (a) G.S. 7A-133 reads as rewritten:

"§ 7A-133.
Numbers of judges by districts; numbers of magistrates and additional seats of
court, by counties.

Each district court district shall have the numbers of judges
and each county within the district shall have the numbers of magistrates and
additional seats of court, as set forth in the following table:

Additional

Magistrates
Seats of

District
Judges
County
Min.-Max. Court

1
34
Camden
1 2

Chowan
2 3

Currituck
1 2

Dare
3 8

Gates
2 3

Pasquotank
3 4

Perquimans
2 3

2
3
Martin
5 8

Beaufort
4 8

Tyrrell
1 3

Hyde
2 4

Washington
3 4

3A
3
Pitt
10 12
Farmville

Ayden

3B
4
Craven
7 10
Havelock

Pamlico
2 3

Carteret
5 8

4
6
Sampson
6 8

Duplin
9 11

Jones
2 3

Onslow
8 14

5
6
New Hanover
6 11

Pender
4 6

6A
2
Halifax
9
14 Roanoke

Rapids,

Scotland Neck

6B
2
Northampton
5 6

Bertie
4 5

Hertford
5 6

7
6
Nash
7 10
Rocky Mount

Edgecombe
4
6
Rocky Mount

Wilson
4 6

8
56
Wayne
5
11 Mount
Olive

Greene
2 4

Lenoir
4 10
La Grange

9
5
Person
3 4

Granville
3 7

Vance
3 5

Warren
3 4

Franklin
3 6

10
1112
Wake
12
20 Apex,

Wendell,

Fuquay-

Varina,

Wake (Forest

11
6
Harnett
7 11
Dunn

Johnston
10 12
Benson,

Clayton

and Selma

Lee
4 6

12
67
Cumberland
10 17

13
4
Bladen
4 6

Brunswick
4 7

Columbus
6
8
Tabor City

14
5
Durham
8 12

15A
3
Alamance
7
10 Burlington

15B
3
Orange
4
11 Chapel
Hill

Chatham
3
8
Siler City

16A
2
Scotland
3 5

Hoke
4 5

16B
5
Robeson
8
16 Fairmont,

Maxton,

Pembroke,

Red Springs,

Rowland,

St. Pauls

17A
3
Caswell
2 5

Rockingham
4
9
Reidsville,

Eden,

Madison

17B
3
Stokes
2 5

Surry
5 8
Mt. Airy

18
1011
Guilford
20 26
High Point

19A
2
Cabarrus
5
9
Kannapolis

19B
3
Montgomery
2 4

Randolph
5
8
Liberty

19C
2
Rowan
5 10

20
6
Stanly
5 6

Union
4 6

Anson
4 5

Richmond
5
6
Hamlet

Moore
5 8
Southern

Pines

21
7
Forsyth
3
15
Kernersville

22
6
Alexander
2 3

Davidson
7 10
Thomasville

Davie
2 3

Iredell
4 8
Mooresville

23
3
Alleghany
1 2

Ashe
3 4

Wilkes
4 6

Yadkin
3 5

24
3
Avery
3 4

Madison
4 5

Mitchell
3 4

Watauga
4 6

Yancey
2 4

25
7
Burke
4 7

Caldwell
4 7

Catawba
6 9
Hickory

26
13
Mecklenburg
15 26

27A
5
Gaston
11 20

27B
4
Cleveland
5 8

Lincoln
4 6

28
5
Buncombe
6 15

29
4
Henderson
4 6

McDowell
3 4

Polk
3 4

Rutherford
6 8

Transylvania
2 4

30
34
Cherokee
3 4

Clay
1 2

Graham
2 3

Haywood
5 7
Canton

Jackson
3 4

Macon
3 4

Swain
2 3."

(b) The Governor shall
appoint additional district court judges for district court districts 1, 8, 10,
12, 18, and 30 as authorized by subsection (a) of this section. Their
successors shall be elected in the 1996 general election for four-year terms
commencing the first Monday in December 1996.

(c) Subsections (a) and
(b) of this section become effective November 1, 1993, or fifteen days after
the date upon which those subsections are approved under Section 5 of the
Voting Rights Act of 1965, whichever is later.

(d) Effective December 1,
1994, G.S. 7A-133, as rewritten by Section 200.4(e) of this act and by
subsection (a) of this section, reads as rewritten:

"§ 7A-133.
Numbers of judges by districts; numbers of magistrates and additional seats of
court, by counties.

Each district court district shall have the numbers of judges
and each county within the district shall have the numbers of magistrates and
additional seats of court, as set forth in the following table:

Additional

Magistrates
Seats of

District
Judges
County
Min.-Max.
Court

1
4
Camden
1 2

Chowan
2 3

Currituck
1 2

Dare
3 8

Gates
2 3

Pasquotank
3 4

Perquimans
2 3

2
3
Martin
5 8

Beaufort
4 8

Tyrrell
1 3

Hyde
2 4

Washington
3 4

3A
34
Pitt
10 12
Farmville

Ayden

3B
4
Craven
7
10 Havelock

Pamlico
2 3

Carteret
5 8

4
6
Sampson
6 8

Duplin
9 11

Jones
2 3

Onslow
8 14

5
6
New Hanover
6 11

Pender
4 6

6A
2
Halifax
9
14 Roanoke

Rapids,

Scotland Neck

6B
23
Northampton
5 6

Bertie
4 5

Hertford
5 6

7
6
Nash
7 10
Rocky Mount

Edgecombe
4
6 Rocky Mount

Wilson
4 6

8
6
Wayne
5 11
Mount Olive

Greene
2 4

Lenoir
4 10
La Grange

9
4
Granville
3 7

Vance
3 5

Warren
3 4

Franklin
3 6

9A
2
Person
3 4

Caswell
2 5

10
12
Wake
12 20 Apex,

Wendell,

Fuquay-

Varina,

Wake Forest

11
6
Harnett
7
11 Dunn

Johnston
10 12 Benson,

Clayton

and Selma

Lee
4 6

12
7
Cumberland
10 17

13
4
Bladen
4 6

Brunswick
4 7

Columbus
6
8 Tabor City

14
5
Durham
8 12

15A
3
Alamance
7
10 Burlington

15B
3
Orange
4
11 Chapel Hill

Chatham
3 8
Siler City

16A
2
Scotland
3 5

Hoke
4 5

16B
5
Robeson
8
16 Fairmont,

Maxton,

Pembroke,

Red Springs,

Rowland,

St. Pauls

17A
2
Rockingham
4
9 Reidsville,

Eden,

Madison

17B
3
Stokes
2 5

Surry
5 8
Mt. Airy

18
11
Guilford
20 26 High
Point

19A
23
Cabarrus
5
9 Kannapolis

19B
3
Montgomery
2 4

Randolph
5 8
Liberty

19C
23
Rowan
5 10

20
67
Stanly
5 6

Union
4 6

Anson
4 5

Richmond
5
6 Hamlet

Moore
5 8
Southern

Pines

21
7
Forsyth
3 15
Kernersville

22
67
Alexander
2 3

Davidson
7 10
Thomasville

Davie
2 3

Iredell
4
8 Mooresville

23
3
Alleghany
1 2

Ashe
3 4

Wilkes
4 6

Yadkin
3 5

24
3
Avery
3 4

Madison
4 5

Mitchell
3 4

Watauga
4 6

Yancey
2 4

25
7
Burke
4 7

Caldwell
4 7

Catawba
6
9 Hickory

26
1314
Mecklenburg
15 26

27A
5
Gaston
11 20

27B
4
Cleveland
5 8

Lincoln
4 6

28
5
Buncombe
6 15

29
4
Henderson
4 6

McDowell
3 4

Polk
3 4

Rutherford
6 8

Transylvania
2 4

30
4
Cherokee
3 4

Clay
1 2

Graham
2 3

Haywood
5 7
Canton

Jackson
3 4

Macon
3 4

Swain
2 3."

(e) The additional
district court judges for district court districts 3A, 6B, 19A, 19C, 20, 22,
and 26 shall be elected in the 1994 general election for four-year terms
commencing the first Monday in December 1994.

(f) Subsection (d)
of this section becomes effective December 1, 1994, but elections shall be held
in 1994 as provided by law.

Requested by: Senator Odom, Representatives Holt, Gist

ADD ADDITIONAL ASSISTANT DISTRICT
ATTORNEYS/CHANGE PROSECUTORIAL DISTRICT 19A AND CREATE PROSECUTORIAL DISTRICT
19C/ADD INVESTIGATORIAL ASSISTANTS IN THE FIRST AND EIGHTH PROSECUTORIAL
DISTRICTS